ServiceNow (NOW) Earns Buy Reco, $130 PT from BofA, Climbs 8.8%

ServiceNow Inc. (NYSE:NOW) is one of the 10 Stocks Making Monster Moves.

ServiceNow extended its winning streak to a 3rd straight session on Monday, climbing 8.78 percent to close at $103.42 apiece, as investor sentiment was boosted by the Bank of America’s (BofA) highly optimistic coverage for its stock.

In a market note during the day, BofA issued a “buy” recommendation for shares of ServiceNow Inc. (NYSE:NOW), alongside a price target of $130. The figure marked a 25.7 percent upside potential from its latest closing price, and was 36.7 percent higher than the $95.07 close prior to the coverage.

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“While AI is disrupting the software landscape, we think NOW stands to benefit from, rather than be replaced by, new AI solutions,” BofA said, noting that its workflow entrenchment “uniquely [positions] it to benefit” from autonomous agents deployed across IT, employee, and customer workflows.

Assuming ServiceNow Inc. (NYSE:NOW) can avoid disruption, BofA projects the company to grow its revenues by 18 to 22 percent through 2022, while maintaining a free cash flow margin of 35 to 37 percent.

ServiceNow Inc. (NYSE:NOW) currently holds a strong buy consensus from 39 Wall Street analysts, 35 of whom recommend buying its shares, while four suggest holding shares.

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 the cheapest AI stock.

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