Stifel reiterates Buy rating on ServiceNow stock, citing improved selling environment By Investing.com
Key Takeaways
- Stifel maintained a Buy rating and $1,200 price target on ServiceNow, citing strong performance metrics.
- ServiceNow showed quarter-over-quarter improvement in Enterprise and Commercial selling, driven by core workflows and new offerings.
- The company recently launched the AI Experience interface and the Zurich platform, significantly enhancing its AI capabilities.
- Stifel expects Q3 2025 cRPO upside, projecting federal sector improvement will offset minor European Public Sector weakness.
- ServiceNow is offering substantial discounts (up to 70%) to federal agencies to accelerate AI adoption in government operations.
Stifel issued a research note on Friday maintaining its Buy rating and $1,200 price target for ServiceNow, a major Software industry player. The firm observed a positive quarter-over-quarter trend in ServiceNowâs Enterprise and Commercial selling environments, bolstered by core workflows and offerings like Pro+ and Workflow Data Fabric. While acknowledging weakness in the European Public Sector, Stifel believes strength in the Federal sector will compensate, leading to expected upside in third-quarter 2025 cRPO. ServiceNow recently unveiled significant product updates, including the AI Experience, a unified conversational interface, and the Zurich platform, which features advanced AI capabilities and new developer tools like "vibe coding." Additionally, Truist Securities reiterated its Buy rating, and ServiceNow is actively promoting AI adoption in government with significant discounts for federal agencies.
