Truist Securities Asserts ‘Buy’ Rating on ServiceNow Inc. (NOW), Downplays Seat-Based Growth Concerns

ServiceNow, Inc. (NYSE:NOW) is one of the best tech stocks to buy for the long term. The company has demonstrated strong revenue growth of 21% over the past 12 months, supported by solid profit margins of 78.5%. Consequently, on September 8, analysts at Truist Securities reiterated a ‘Buy’ rating on the stock and a $1,200 price target.

According to the research firm, the heightened adoption of artificial intelligence is not in any way threatening the company’s seat-based growth model. Therefore, it maintains the buy rating as the company is not experiencing a reduction in seat counts among its customers. The company has already adjusted its internal hiring processes to leverage the efficiencies of AI.

The remarks come as ServiceNow agrees with the US General Services Administration to promote AI-driven modernization across federal agencies. In Brazil, it has already teamed up with SENAI-SP on the launch of a statewide AI skills training program.

ServiceNow, Inc. (NYSE:NOW) provides an AI-powered digital workflow platform that helps organizations automate tasks, improve operational efficiency, and unify experiences across departments like IT, customer service, and human resources. Its solutions allow businesses to digitize workflows, enhance productivity, and deliver better services to both employees and customers.

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Disclosure: None. This article is originally published at Insider Monkey.