TD Cowen Reiterates Buy Rating on ServiceNow (NOW) Stock

ServiceNow, Inc. (NYSE:NOW) is one of the Most Promising AI Stocks to Buy Right Now. On October 23, analyst Derrick Wood from TD Cowen reiterated a “Buy” rating on the company’s stock and has a price objective of $1,200.00. The analyst’s rating is backed by a combination of factors highlighting ServiceNow, Inc. (NYSE:NOW)’s healthy performance and growth potential. As per the analyst, the company is projected to post healthy results for Q3 2025, thanks to the strong execution in the US federal bookings and a favourable outlook on AI adoption, which are expected to alleviate concerns related to the government spending uncertainties.

ServiceNow, Inc. (NYSE:NOW) exhibited strength in the enterprise segment, with higher demand for AI-related workloads as well as a healthy increase in average deal sizes because of product bundling and successful upgrades. Furthermore, ServiceNow, Inc. (NYSE:NOW)’s innovations, like the Workflow Data Fabric and AI Experience, together with strategic acquisitions, position it well for future opportunities in CRM and AI monetization.

ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“We did see good results from AI-ecosystem holdings in IT and industrials. Within IT, ServiceNow, Inc. (NYSE:NOW) remains a leader among its software peers in the monetization of generative AI, with a target of $1 billion in annual contract value from AI-related products by 2026.”

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.

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