Analyst Keith Bachman from BMO Capital reiterated a Buy rating on ServiceNow (NOW – Research Report) and keeping the price target at $1,025.00.
Keith Bachman has given his Buy rating due to a combination of factors that highlight ServiceNow’s strategic positioning and growth potential. The company is actively expanding its AI platform, which is expected to enhance its competitive edge by increasing the number of use cases and capturing emerging AI opportunities. This strategic focus on AI, combined with the introduction of new solution frameworks like the AI Control Tower and AI Agent Orchestration, positions ServiceNow to capitalize on the growing demand for AI-driven solutions.
Furthermore, ServiceNow’s management has projected significant growth in AI-related annual contract value, aiming for $1 billion by the end of 2026. This projection underscores the company’s confidence in its ability to drive revenue through a combination of seats and consumption. Additionally, the introduction of Workflow Data Fabric, which connects and automates data access, is expected to facilitate faster analytics and support AI adoption. These initiatives, along with the company’s strong presence in its core IT service management market, contribute to the positive outlook and the Buy rating.
According to TipRanks, Bachman is a 5-star analyst with an average return of 10.7% and a 57.86% success rate. Bachman covers the Technology sector, focusing on stocks such as Adobe, ServiceNow, and Accenture.