ServiceNow: Resilient Growth, AI Monetization, and Accretive Acquisitions Create Attractive Risk/Reward

Morgan Stanley analyst Keith Weiss maintained a Buy rating on ServiceNow today and set a price target of $210.00.

Keith Weiss has given his Buy rating due to a combination of factors, including ServiceNow’s resilient fundamentals and attractive valuation relative to peers. He notes that despite investor worries about GenAI disruption and a more acquisition-driven strategy, the company is still delivering around 20% subscription revenue growth and appears well positioned to monetize AI through products like Now Assist, reinforcing its role as a core workflow platform across the enterprise.

Weiss also highlights that recent acquisitions, particularly Armis, should expand ServiceNow’s addressable market in operational technology and strengthen its configuration database with richer asset data, enhancing end-to-end workflow capabilities and supporting incremental growth. With shares trading around 14x CY27 free cash flow and roughly 26x GAAP P/E, below other large-cap software names despite a stronger growth and margin profile, he views the risk/reward as favorable and expects AI- and consumption-driven tailwinds to support re-acceleration in the second half of the year.

Weiss covers the Technology sector, focusing on stocks such as Microsoft, Intuit, and CoreWeave. According to TipRanks, Weiss has an average return of 8.8% and a 58.54% success rate on recommended stocks.

In another report released yesterday, Wells Fargo also assigned a Buy rating to the stock with a $185.00 price target.