ServiceNow (NYSE:NOW) is attracting significant interest as an underappreciated software stock offering artificial intelligence (AI) solutions. According to analysts at Stifel, the company is gaining traction with customers keen on its AI offerings.
Stifel has given ServiceNow a ‘buy’ rating and set a 12-month target price of $820. The stock is currently trading at $758.25, showing a 0.2% increase, and is up more than 7% year-to-date.
Based in Santa Clara, California, ServiceNow specializes in cloud-based platforms for managing digital workflows in enterprise operations. The company’s AI-infused products have been well-received, with a recent customer survey revealing that 51% of respondents intend to consider procuring ServiceNow’s Pro+ stock keeping units within the next year. Most customers are interested in using the workflow automation capabilities to enhance productivity within the platform.
Stifel noted that the survey results surpassed their expectations, indicating a strong pipeline of potential customers. This visibility is expected to support ServiceNow’s revenue growth of over 20% and margin expansion in the coming years.
Overall, ServiceNow’s innovative AI solutions and strong customer interest suggest a bright future for the company in the software market.
