ServiceNow (NOW) Gets Initiated With a Neutral Rating by Macquarie

NOW

ServiceNow, Inc. (NYSE:NOW) is one of the best low volatility large cap stocks to invest in. ServiceNow, Inc. (NYSE:NOW) was initiated with a Neutral rating by Macquarie analyst Steven Koenig on November 25 with a price target of $860. The firm told investors that it considers ServiceNow, Inc. (NYSE:NOW) to be a “great company but only a fair stock” at current share levels.

Although the analyst acknowledges its position as a leading company in the SaaS sector with solid capabilities in IT service management and workflow automation, the stock is currently trading at a premium to its software peers. According to Koenig, this makes the valuation concern a notable reason supporting the Hold rating, as the stock’s current price may not be able to completely justify its potential upside.

In addition, the firm also believes that easing negative software-as-a-service sentiment on AI fears “could take time”, and highlighted the broader negative sentiment associated with SaaS companies arising from competition from AI-native firms.

While the analyst notes that ServiceNow, Inc. (NYSE:NOW) boasts a strong market position with execution capabilities, he added that the absence of a clear catalyst for sentiment shift, along with competitive pressures, warrants a cautious stance for the stock.

ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.

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.