Bank of America says buy this workflow automation leader in A.I. poised to rally nearly 20%
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Investors should consider buying this enterprise software stock and “leading workflow automation AI name” that has risen more than 57% this year. Analyst Brad Sills reiterated ServiceNow as a top pick and a buy in a Wednesday note to clients, revising his price target to $700 from $600 share. The adjustment reflects 17% upside from Tuesday’s close. NOW YTD mountain ServiceNow shares in 2023 “We believe that ServiceNow is positioned to capture share of three large market opportunities: ITSM, ITOM & custom apps, estimated by Gartner to be $21.3bn, $16.5bn & $64.7bn, respectively,” he wrote. ITSM and ITOM stand for IT service management and IT operations management software. Sills’ upside case anticipates mid-20s growth through 2028, and should account for $28.3 billion in revenue, or 27.6% of these markets combined. He views ServiceNow’s upcoming AI-related products as potential catalysts for bookings in the fourth quarter. This should also benefit current remaining performance obligations in the second quarter. Recent commentary with partners also suggested that heightened AI interest is contributing to an increase in Pro editions, he added. — CNBC’s Michael Bloom contributed reporting
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