Argus Research raised its price target on ServiceNow (NYSE: NOW) to $170. This marks an increase from the previous target of $134. The firm maintains a "Buy" rating on the stock. The new target suggests a potential upside of over 23% from the stock's previous closing price.
Argus's positive outlook stems from ServiceNow's opportunity to leverage its IT operations strength with new generative AI tools. The firm notes the company is in a rapid research and development cycle, investing in product extensions into adjacent areas. The upgrade also follows a period where ServiceNow's quarterly earnings and revenue surpassed analyst expectations.