ServiceNow, Inc. (NYSE:NOW) is one of the AI stocks that analysts are watching. On October 14, UBS lowered the price target for the stock from $1,100.00 to $1,075.00, while maintaining its Buy rating. The rating was announced prior to the company’s third quarter earnings report.
UBS conducted a partner and customer survey to assess ServiceNow’s momentum in the third quarter. The company noted that the check reveals good and solid performance in its core business, which is why it is poised for normal performance.
One drawback is that the feedback regarding the AI implementation has been a bit disappointing. This is consistent with feedback we’re receiving for other Software-as-a-Service (SaaS) companies.
“Ahead of ServiceNow’s Q3 2025 earnings call on Oct. 29, we spoke to several ServiceNow partners and customers to assess how ServiceNow’s momentum progressed in the third quarter. In short, core business checks were good/solid and normal in our view, but similar to what we’re hearing from other SaaS companies’ checks, the feedback on AI adoption was somewhat disappointing.”
SaaS/app sentiment is already cautious and, frankly, probably the worst it’s been in years, but the stock is trading at just 36x 2026 and growing at about 20%, so the short-term downside may be limited. ”
ServiceNow, Inc. (NYSE:NOW) is a technology company that provides a cloud-based software platform for automating business workflows within enterprises.
While we appreciate NOW’s potential as an investment, we believe certain AI stocks have greater upside potential and less downside risk. If you’re looking for highly undervalued AI stocks that could also benefit greatly from Trump-era tariffs and onshoring trends, check out our free report on the best AI stocks in the short term.
Read next: 10 AI stocks every investor should be watching and 10 AI stocks that are trending on Wall Street
Disclosure: None.
