DA Davidson Initiates Coverage of ServiceNow (NOW) with a Buy Rating

ServiceNow, Inc. (NYSE:NOW) is one of the 13 Best Long Term Growth Stocks to Invest in Right Now. On June 25, DA Davidson analyst Gil Luria initiated coverage of ServiceNow, Inc. (NYSE:NOW) with a Buy rating and a $1,150 price target.

The analyst told investors in a research note that ServiceNow, Inc. (NYSE:NOW) has been holding the leading position as a business automation provider for “over two decades” now. The firm sees additional potential as the company is in the initial stages of disrupting the CRM market, which is experiencing “a once-in-a-generation shift due to AI.”

Was Jim Cramer Right Calling ServiceNow (NOW) an Exception to the Software Last Year?

A team of software engineers at desks working on code for a cutting-edge cloud computing solution.

DA Davidson further supported the optimistic outlook by reasoning that it expects ServiceNow, Inc. (NYSE:NOW) to experience additional share gains outside of its traditional IT Service Management market, supported by its “best-of-breed platform and AI capabilities.”

ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.

While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.