Why Goldman Sachs Is Betting on ServiceNow, Inc. (NOW)'s Long-Term Growth

ServiceNow, Inc. (NYSE:NOW) is among the most promising growth stocks according to analysts. On January 12, Goldman Sachs assumed coverage on ServiceNow, Inc. (NYSE:NOW) with a ‘Buy’ rating and a price target of $205, which suggests an upside potential of about 44%. According to the firm, AI adoption will be a “positive tailwind” to the software total addressable market over the next ten years. That said, the analyst believes the company is poised to lead the agent orchestration market.

Gabriela Borges, analyst at Goldman Sachs, forecasts a higher chance of ServiceNow, Inc. (NYSE:NOW) maintaining an organic compound annual growth rate of 20% through 2029. This positive stance follows the company’s expansion into new areas, particularly Customer Relationship Management, Enterprise Resource Planning, and Human Capital Management.

What’s even more interesting is ServiceNow, Inc. (NYSE:NOW)’s emergence in the tech stack, along with its appetite for M&A, which strengthens the company’s position to explore the Security space.

Overall, ServiceNow, Inc. (NYSE:NOW) is a Buy among 92% of the analysts covering the stock. The stock’s recent dip to $142.64 makes it worth watching, given its long-term potential.

ServiceNow, Inc. (NYSE:NOW) is a California-based provider of cloud-based solutions for digital workflows. Incorporated in 2004, the company operates the Now platform and delivers a diverse range of products, including customer service management, field service management applications, and source-to-pay 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: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.