Morgan Stanley Raises ServiceNow Stock Rating and Price Target

Summary

Morgan Stanley upgraded ServiceNow, Inc. (NYSE:NOW) from Equalweight to Overweight on September 24, raising the price target from $1,040.00 to $1,250.00. Analyst Keith Weiss cited overblown risks associated with the company, which is currently highlighted as one of the AI stocks to watch this week.MSN

Impact Analysis

So basically, Morgan Stanley’s upgrade of ServiceNow is a strong vote of confidence in the company’s future, particularly its AI capabilities. The timing is interesting, as it comes amid broader market skepticism about tech stocks, suggesting Morgan Stanley sees something others might be missing. The price target hike to $1,250 implies a significant upside of over 34% from current levels, which is a bold call given the stock’s 12.5% decline year-to-date Reuters. The market might be underestimating ServiceNow’s potential to leverage GenAI capabilities to achieve its 2026 subscription revenue goals and maintain robust free cash flow growth. The technical analysis shows mixed signals, with a long-term downtrend but short-term bullish indicators like the MACD golden cross . This could be a good entry point for investors willing to bet on a turnaround, especially if the broader market sentiment shifts. Keep an eye on how other analysts adjust their ratings and targets in response to this upgrade.