ServiceNow, Inc. (NYSE:NOW) is one of the AI Stocks Gaining Attention on Wall Street. On January 5, Cantor Fitzgerald analyst Thomas Blakey reiterated an Overweight rating on the stock with a $240.00 price target.
The firm is optimistic on the stock, driven by driven factors including seat growth, better-than-expected results in the Federal sector, artificial intelligence initiatives, and uptick in mergers and acquisitions activity.
Cantor is optimistic on ServiceNow, noting that the stock is trading near its three-year valuation low at 8.5x projected 2027 revenue. Analysts believe that calendar 2027 could exceed current consensus estimates of 18% growth, supported by rising seat adoption, robust federal business, AI momentum, and increased M&A activity.
The firm further noted that it does not view ServiceNow’s recent M&A activity as buying growth. Instead, it believes that it is expanding the company’s total addressable market, which aligns with observations from Knowledge 2025.
Cantor also discussed how ServiceNow is strengthening its AI data stack with a focus on governance and security to meet customer needs.
ServiceNow, Inc. (NYSE:NOW) provides a platform that integrates workflows, data, and AI to coordinate how work flows across large organizations.
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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