ServiceNow (NYSE:NOW) shares rose after Guggenheim analyst John DiFucci upgraded the company to Buy from Neutral. The firm set a $125 price target and identified an attractive entry point for investors.
Guggenheim expects the company to maintain double-digit growth. The upgrade is driven by anticipated performance improvements in the U.S. Federal Government sector.
Analysts noted that while AI monetization faces near-term uncertainty, it does not pose a terminal threat to the business. This move follows a period of stock underperformance.