Needham increased its price target for ServiceNow Inc. to $155 from $115. The firm maintained a "Buy" rating on the stock.
Needham cited more constructive client engagement and growing investor interest in software systems of record for its positive outlook. Analysts highlighted ServiceNow's strategic positioning and product roadmap for AI Governance. They noted AI Governance is increasingly important for enterprises.
The firm noted ServiceNow's shares performed well since its last earnings report. That report showcased a strong beat-and-raise quarter. This performance alleviated earlier concerns about a slowdown in software-as-a-service spending.
Other recent analyst reports also cited the company's strong AI momentum. They also noted significant federal contract wins.