CMB International Securities Maintains Buy Rating on ServiceNow (NOW) Stock

ServiceNow, Inc. (NYSE:NOW) is one of the Best Cloud Computing Stocks to Invest in Now. Analyst Saiyi He from CMB International Securities maintained a “Buy” rating on the company’s stock and has a price objective of $1,175.00. The analyst’s rating is backed by a combination of factors, such as ServiceNow, Inc. (NYSE:NOW)’s healthy financial performance and strategic positioning. The company posted a strong increase in its revenue and operating income for Q2 2025, exceeding the market expectations.

As per the analyst, this growth was mainly due to the AI-enhanced efficiencies and strategic marketing timing, resulting in a strong increase in subscription revenue and contract renewals. ServiceNow, Inc. (NYSE:NOW) posted total revenues of $3,215 million in Q2 2025, reflecting YoY growth of 22.5%. Also, ServiceNow, Inc. (NYSE:NOW)’s healthy demand for its AI solutions, despite the macroeconomic concerns, underscores the potential for continued growth, added He. Its AI-driven products saw significant adoption, with a healthy increase in deal counts and customer usage.

ServiceNow, Inc. (NYSE:NOW) launched the ServiceNow Protected Platform Singapore (SPP-SG), which is a new secure, regulatory-compliant cloud platform. This will accelerate AI innovation and strengthen data security for the Singapore government and regulated sectors. ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“The Strategy’s select growth exposure increased during the quarter due to the strong performance of the higher-beta stocks in this growth bucket as well as the purchase of ServiceNow, Inc. (NYSE:NOW). The company provides an end-to-end software-as-a-service (SaaS) platform to help enterprise customers automate and standardize business processes in areas like IT, customer services, sales and data security. ServiceNow also has a monetizable generative AI product being adopted by its customers. We have liked the business for a long time and took advantage of the April selloff to establish a position.”

ServiceNow, Inc. (NYSE:NOW) is a critical player in the broader cloud computing space, which provides a platform for automation of digital workflows throughout IT, customer, employee, and business operations.

While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.