Why did the analyst upgrade ServiceNow?

The analyst believes AI disruption fears have pushed the stock to an attractive valuation, making it a buying opportunity.

Was a new price target set?

No new price target was disclosed in the upgrade.

What was the impact of the upgrade on the stocks?

Both Salesforce and ServiceNow stocks jumped in the afternoon session following the upgrade.

Guggenheim Upgrades Salesforce and ServiceNow to Buy

Guggenheim's John DiFucci upgraded both Salesforce and ServiceNow to Buy, arguing that AI disruption fears that gutted the sector during the year had pushed valuations too low.

July 1, 2026

2 min read

Source: StockStory

Guggenheim analyst John DiFucci upgraded both Salesforce (CRM) and ServiceNow (NOW) to Buy, arguing that AI disruption fears that battered the sector during the year had pushed valuations too low.

Rating Change

Previously, Guggenheim had a Neutral rating on both stocks. After the upgrade, the rating is now Buy, with no new price target disclosed.

Analyst Rationale

DiFucci believes the market overreacted to AI disruption risks for software companies, driving Salesforce and ServiceNow to attractive valuation levels. He noted that these companies have the ability to adapt to AI technologies, making current valuations a buying opportunity.

Context

The upgrade comes after a period of pressure on tech stocks due to AI disruption fears. While some other analysts remain cautious, DiFucci argues the selloff was excessive.

What to Make of It

Guggenheim's upgrade reflects confidence in Salesforce and ServiceNow's ability to navigate AI challenges, but investors should monitor sector developments and other analyst opinions before making decisions.

Frequently Asked Questions

Guggenheim upgraded Salesforce to Buy from Neutral.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.