ServiceNow (NOW) Stock Finds Support as Analysts See Growth Potential for 2027

ServiceNow, Inc. (NYSE:NOW) is one of AI stocks are attracting attention on Wall Street. On January 5, Cantor Fitzgerald analyst Thomas Blakey reiterated an overweight rating on the stock with a price target of $240.00.

The company is bullish on the stock, driven by driving factors such as seat growth, better-than-expected results in the federal sector, artificial intelligence initiatives and rising merger and acquisition activity.

Cantor is bullish on ServiceNow, noting that the stock is trading near its three-year low at 8.5 times projected 2027 revenue. Analysts believe calendar 2027 could exceed current consensus estimates of 18% growth, supported by increasing seat adoption, robust federal activity, AI momentum and increased M&A activity.

The company further indicated that it does not view ServiceNow’s recent M&A activity as purchasing growth. Instead, the company believes it expands the company’s total addressable market, which is consistent with Knowledge 2025’s observations.

Cantor also explained 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 workflow, data and AI to coordinate how work happens across large organizations.

While we recognize NOW’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for a hugely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the reshoring trend, check out our free report on the best AI stock in the short term.

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Disclosure: None.