ServiceNow rises after Bank of America analysts reinstate as a “buy” with a $130 price target
ServiceNow is up 4% in early trading on Tuesday, after Bank of America analysts reinstated coverage of the stock with a “buy” rating and a $130 price objective.
Now seeing the company as an “AI beneficiary given its entrenched workflow position,” Bank of America analysts led by Tal Liani wrote that “AI increases the need for governance, positioning ServiceNow at the center of workflow orchestration and control.” Replacing NOW with new AI tools, which has been the primary concern for many investors who have dumped the stock this year (the company’s earnings being the latest example), will be “costly and complex,” considering the company’s “deeply embedded mission-critical position” within existing enterprise workflows, according to BofA’s analysts.
The threat of AI agents, which can autonomously do tasks once set up, might actually lead to more demand for ServiceNow’s products, with Liani writing that agentic AI deployments “would elevate the need for orchestration, permissions, approvals, policy enforcement and auditability, aligning directly with ServiceNow’s core capabilities and making it the orchestration layer in an AI-driven cycle.”
The team also highlighted how ServiceNow’s recent initiatives would benefit from AI, rather than being threatened:
“...we see the company capturing incremental value as AI adoption scales: AI Control Tower defines the strategic role; Action Fabric provides the connective layer into workflows; hybrid pricing creates the monetization model; and the Armis/Veza acquisitions strengthen the security and identity context.”
That’s a much-needed vote of confidence for NOW, which has seen its shares drop more than 40% in 2026 until the past week’s uptick. Other software peers like Workday, Atlassian, HubSpot, and Intuit are also in the green before the bell on Tuesday.
