Is Wall Street Bullish or Bearish on ServiceNow Stock?
Why it matters: This signals a potential buying opportunity for investors as Wall Street anticipates a rebound for ServiceNow, driven by strong fundamentals and a shift in market sentiment towards established SaaS companies.
- ServiceNow (NOW) shares surged 3.1% on Feb. 9 as analysts suggest the stock is undervalued after a SaaS downturn.
- Barclays PLC (BCS) reports enterprise migrations from legacy systems take years, creating a durable competitive moat for ServiceNow.
- Analysts forecast a 26.5% year-over-year EPS growth for ServiceNow in fiscal 2026, with a consensus rating of 'Strong Buy' based on 44 analysts.
- RBC Capital maintains a 'Buy' rating on NOW with a price target of $150, indicating a 40.1% potential upside.
Despite lagging the broader market and its sector in the past year, ServiceNow (NOW) is experiencing renewed investor optimism, driven by analysts citing undervalued levels after a recent SaaS downturn and confidence in its durable competitive advantages. A consensus of analysts rates ServiceNow as a 'Strong Buy,' with RBC Capital maintaining a 'Buy' rating and projecting significant upside, signaling a potential rebound for the cloud-based workflow solutions provider.
