Wall Street Analysts Still See 76% Upside in This Beaten-Down Artificial Intelligence (AI) Stock. Should You Trust Them?

2 days ago 7

Justin Pope, The Motley Fool

Tue, April 7, 2026 astatine 10:35 AM CDT 3 min read

ServiceNow (NYSE: NOW) has a beardown estimation arsenic 1 of the world's largest bundle companies. Its software-as-a-service (SaaS) concern exemplary has generated soaring income and profits that person made the banal a large victor until recently.

Fears that artificial quality (AI) volition erode bundle companies' competitory moats person driven a steep industrywide sell-off. ServiceNow is presently 56% disconnected its high.

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Wall Street analysts person fixed the banal their support. According to CNN Business, 91% of the 47 analysts covering the banal complaint it a buy, with a median people terms of $180. That implies the banal has 76% upside from here. But bash these ratings marque sense?

A machine  interface with information  and a model   that says AI Agents.

Image source: Getty Images.

ServiceNow provides bundle tools for managing workflows passim companies. That could beryllium an IT enactment summons oregon a attraction contented with a portion of machinery. Everything successful a large concern needs a process and a strategy to way it all. ServiceNow handles each this done its platform.

Since overmuch of this involves automating elemental tasks, AI is lowering competitory barriers. AI agents are already susceptible of performing galore of the tasks that ServiceNow charges for, which could statesman to erode the company's pricing power.

However, it's not that simple. ServiceNow already has years of proprietary information and operates beneath the information and information furniture that enterprises defender precise closely. Completely replacing ServiceNow isn't easy, portion replacing 1 workflow astatine a clip would undermine the convenience and ratio its level already offers.

ServiceNow is besides proactively embracing AI, bringing AI agents and different tools to its customers earlier they spell elsewhere successful hunt of them. It's besides pivoting to a usage-based billing exemplary to support against little caput counts if AI collapses seat-based pricing.

The world is that AI is some an accidental and a threat. Only clip volition archer however AI impacts ServiceNow's concern and to what extent.

Today, ServiceNow banal trades astatine little than 25 times 2026 net estimates, portion analysts estimation net volition turn by an mean of 24% annually implicit the adjacent 3 to 5 years. Shares are a bargain contiguous if the concern generates anyplace adjacent that level of maturation moving forward.

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