KeyBanc Reiterates Service Now’s (NOW) Underweight Rating

ServiceNow Inc. (NYSE:NOW) is one of the Best American AI Stocks to Buy Now. On May 5, KeyBanc reiterated an Underweight rating on ServiceNow and set an $85 price target on the stock following the company’s financial analyst day, according to a report by Investing.com.

On May 4, ServiceNow held its Financial Analyst Day, where its CEO, Bill McDermott, announced a target of $30 billion in subscription revenue by 2030. Keybanc highlighted that this represents a 17.5% compound annual growth rate from 2027 through 2030 based on the midpoint of 2026 guidance.

Additionally, the company is targeting to operate on a rule of 60 or higher by 2030, a benchmark in which the revenue growth rate plus its profit margin equals 60 or higher.

KeyBanc said it considers both targets as positive, noting that these strike the right balance of aspirational and achievable.

Based on 49 analyst ratings compiled by CNN, 90 percent of analysts rated ServiceNow a Buy, with an average price target of $140, representing a 52.16% upside from the current price of $92.01.

Meanwhile, ServiceNow announced the expansion of its partnership with NVIDIA to extend agentic AI governance from desktops to data centers. The collaboration also introduces Project Arc, a new enterprise autonomous desktop agent, secured by the NVIDIA OpenShell runtime and governed by ServiceNow AI Control Tower, that will run on employee desktops and autonomously complete complex work.

In addition, ServiceNow said its AI Control Tower is now included in the NVIDIA Enterprise AI Factory-validated design, extending enterprise governance to large-scale model workloads.

ServiceNow (NYSE:NOW) provides an end-to-end workflow automation platform for digital businesses. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise.

While we acknowledge the risk and potential of NOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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