Overview

• Morgan Stanley raised ServiceNow to Overweight from Equalweight on September 24 and increased its price target to $1,250 from $1,040.
• The note argues investor worries are overstated, highlighting strong margins, solid cash flow, and continued investment in generative and agentic AI.
• Analysts see upside from Now Assist adoption, a workflow data fabric that unifies enterprise systems, and new offerings such as AI Control Tower.
• The firm acknowledges investor caution tied to government spending exposure, tougher comparisons, and potential business-model shifts related to GenAI.
• Earlier this month, ServiceNow detailed a West Palm Beach innovation hub and AI Institute projected to add 850-plus jobs and about $1.8 billion in economic impact over five years, including a startup accelerator and an Executive Briefing Center.