BofA Restarts ServiceNow Coverage with Buy Rating and $130 Target

Key Facts

According to reports, Bank of America has restarted coverage on ServiceNow with a Buy rating and a $130 price target. The firm believes ServiceNow is strategically positioned to capitalize on AI advancements within the enterprise software landscape. This initiation reflects confidence in the company's ability to integrate artificial intelligence into its core platform offerings.

This bullish outlook comes as major cloud software peers show resilience; Salesforce recently reported an 11% revenue growth in its latest fiscal quarter per official earnings filings, while Microsoft continues to expand its footprint via Copilot integration. Compared to sector performance, analysts suggest ServiceNow holds a competitive edge in workflow automation, supporting the premium valuation assigned by BofA (per market data).

Investors should watch current price levels following this catalyst, keeping in mind that markets are awaiting key economic data including the U.S. Consumer Price Index (CPI) scheduled for release on May 12, 2026, according to the economic calendar. Additionally, upcoming speeches from Fed officials next week will be critical for assessing interest rate trajectories and their impact on high-growth technology valuations.