BofA Reinstates ServiceNow with Buy Rating, $130 Target

Bank of America (NYSE:BAC) reinstated its coverage of ServiceNow (NYSE:NOW) with a Buy rating and a $130 price target on May 18. The call frames the workflow software leader as a clear AI beneficiary, even as Bank of America reinstated Salesforce (NYSE:CRM) at Underperform on the same day.

Rating Change

Prior to this reinstatement, Bank of America did not have active coverage on ServiceNow. The new rating is Buy with a price target of $130, implying upside from current trading levels.

Analyst Rationale

Analysts see ServiceNow as well-positioned to benefit from the agentic AI wave, as its platform can automate complex workflows using AI agents. The company is viewed as a "workflow giant built for the AI era."

Context

In contrast, Bank of America reinstated Salesforce (CRM) with an Underperform rating, indicating a divergent view between the two software companies. The report did not mention ServiceNow's recent stock performance, but the stock currently trades below the price target.

What to Make of It

The recommendation highlights analyst confidence in ServiceNow's AI-driven growth potential, but investors should note that the price target is just one estimate, and other analysts may have different views.