Analysts raise price targets for ServiceNow amid expanding AI partnerships and strong SaaS sector positioning.
Benchmark analyst Yi Fu Lee raised ServiceNow’s (NOW) price target to $130 from $125, maintaining a Buy rating. The adjustment follows a fireside chat with the company’s investor relations head, reinforcing confidence in its SaaS operating model and AI-driven growth prospects.
ServiceNow holds an average price target of $135, reflecting a near 30% upside from its current price of $104.15. Of 50 analysts, 90% rate the stock a Buy, while 8% assign a Hold. The company recently expanded its collaboration with IBM to integrate AI and data capabilities, targeting enterprise modernization and autonomous IT operations.
The partnership aims to unlock enterprise data for AI at scale, combining IBM’s technology with ServiceNow’s workflow automation platform. This move aligns with broader industry trends toward agentic AI adoption in large enterprises.