Truist upgrades ‘rare compounder’ ServiceNow to Buy on selloff

Truist upgraded ServiceNow (NOW) to Buy from Hold with a price target of $1,200, up from $950. The firm believes the company will continue to consolidate the enterprise IT stack, leveraging artificial intelligence and macro uncertainty to strengthen its relative positioning versus other vendors. ServiceNow is a “rare compounder” that will be able to leverage its platform architecture to “power durable growth” via both upsell and cross-sell of products into the largest companies in the world, the analyst tells investors in a research note. Truist sees stock’s pullback year-to-date as an opportunity to put new money to work in shares.