Investing.com - ServiceNow (NYSE:NOW) is an underappreciated software stock, according to analysts at Stifel, that is attracting a lot of interest from customers interested in its AI offerings.
The independent investment bank has a ‘buy’ rating on ServiceNow, with a 12-month target price of $820.
At 10:45 ET (14:45 GMT), ServiceNow stock traded 0.2% higher at $758.25, up over 7% year-to-date, and over 70% higher over the course of the last year.
ServiceNow is a software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
Stifel recently completed a customer survey looking at the company’s generative artificial intelligence-infused products, which indicated that around 51% of customers expected to consider procuring ServiceNow’s Pro+ stock keeping units within the next 12 months, “with most of these customers looking to leverage the workflow automation capabilities to increase productivity within the platform.”
This was more than Stifel expected, saying this provides promising visibility into the pipeline of potential customers, “which should help enable the company to maintain 20%+ revenue growth and margin expansion incoming years.”