BNP Paribas has upgraded its rating on ServiceNow (NOW.US) stock to "Outperform" and raised its price target from $120 to $140. The investment bank indicated that the recent decline in the stock's price "presents an investment opportunity." Analyst Stefan Slowinski stated, "Following the sell-off in 2025, which has intensified this year with a year-to-date drop of 23%, the risk/reward profile for ServiceNow stock has become favorable. We believe software companies need to demonstrate stability in their core business, reliable AI monetization growth, and high-quality profit margins, with stock-based compensation under control. We see these qualities in ServiceNow."

Upon deeper analysis, the analyst expressed his view that by the end of fiscal year 2026, ServiceNow's organic subscription revenue growth rate could reach approximately 20%, exceeding the company's first-quarter guidance of around 18%. Slowinski added, "We see further upside potential if the pace of upgrades from Standard and Pro editions to Pro Plus accelerates, and as customers begin to realize returns from their Assist Pack purchases."