Analysts Cut ServiceNow (NOW) Price Targets But Stay Positive

ServiceNow, Inc. (NYSE:NOW) is one of the 10 Best NYSE Stocks to Buy According to Analysts. On January 8, Wells Fargo reduced its price target on ServiceNow, Inc. (NYSE:NOW) from $255 to $225 but kept its Overweight rating on the stock.

Earlier, on January 5, RBC Capital also lowered its price target on ServiceNow, Inc. (NYSE:NOW) from $240 to $195 and maintained an Outperform rating. The firm believes that 2026 could be a year when the benefits of AI become more visible for companies that are well-positioned for enterprise AI adoption. In certain areas, enterprise spending appears to be stabilizing and improving. RBC Capital also noted that GenAI is driving innovation, even when management teams are still being conservative when giving guidance in early 2026.

Also on January 5, Cantor Fitzgerald reaffirmed its Overweight rating on ServiceNow, Inc. (NYSE:NOW) with a price target of $240. The research firm pointed out that the company’s shares are trading just above a three-year low based on enterprise value to estimated revenue for calendar year 2027. Cantor Fitzgerald also noted that the company’s recent merger and acquisition activity was not an attempt to buy growth, but instead it was to expand its total addressable market.

ServiceNow, Inc. (NYSE:NOW) is an American software and technology company. It provides an AI platform that helps organizations digitize, automate, and manage workflows for enterprise 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.

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