Cantor Fitzgerald Reaffirms Overweight on ServiceNow (NOW) with a $1,200 Target

ServiceNow Inc. (NYSE:NOW) is one of the best stocks to buy according to Citadel LLC. On October 26, Thomas Blakey, an analyst at Cantor Fitzgerald, reaffirmed his bullish stance on the stock, maintaining an Overweight rating and a price target of $1,200. His price target implies a valuation multiple of 16x based on CY 2026 revenue, indicating a premium over the historical forward EV-to-sales average multiple of around 14x.

The analyst emphasized that ServiceNow’s main draw is its profitable growth, which the company has sustained amid burgeoning demand for its AI and agentic AI. Moreover, the company has deepened its platform capabilities to appeal to a growing addressable market.

The analyst’s channel checks suggest that, despite the impact from the government shutdown and other short-term headwinds, large federal agencies continue to expand their spending (measured by annual contract value (ACV), which indicates the stickiness and strategic positioning of ServiceNow’s platforms. He also highlighted the robust demand and customer traction for the company’s agentic offerings, particularly Fabric and RaptorDB.

With such encouraging operational trends, Blakey believes the company should be able to reach, or even surpass, its $1 billion ACV goal for CY 2026.

ServiceNow Inc. (NYSE:NOW) provides cloud-based platforms for digital workflows, enabling organizations to automate and optimize their business processes. The company’s Now Platform offers solutions across IT service management, customer service, HR, and other areas.

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.