BofA Reinstates Coverage on ServiceNow with Buy Rating, Highlighting Agentic AI Potential - Earnings Preview

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- Bank of America’s Reinstatement: BofA formally resumed coverage of ServiceNow with a Buy rating and a $130 price target, signaling confidence in the company’s AI-driven growth trajectory. - Agentic AI Positioning: The analyst argues that ServiceNow’s workflow automation platform could become the central control tower for autonomous AI agents handling IT, employee, and customer tasks, making it a beneficiary rather than a casualty of AI disruption. - Context from Past Calls: The report mentions that the BofA analyst who correctly called NVIDIA’s rise in 2010 recently released a top-10 stock list that did not include ServiceNow, indicating the bank’s current rating is a separate, focused call. - Broader Sector Implications: Salesforce was also reinstated in the same analysis, suggesting that BofA sees multiple enterprise software names as potential AI plays, though ServiceNow is highlighted as particularly well-positioned for the agentic AI shift. BofA Reinstates Coverage on ServiceNow with Buy Rating, Highlighting Agentic AI Potential{随机描述}{随机描述}BofA Reinstates Coverage on ServiceNow with Buy Rating, Highlighting Agentic AI Potential{随机描述}

Key Highlights

Bank of America (NYSE:BAC) reinstated its coverage of ServiceNow (NYSE:NOW) on May 18 with a Buy rating and a $130 price target. The call positions the workflow software leader as a strong beneficiary of artificial intelligence disruption in enterprise software, rather than a victim. BofA’s analyst contends that system-of-action platforms like ServiceNow are well-suited to serve as the central hub—or "control tower"—for managing autonomous agents across IT, employee, and customer workflows. The reinstated coverage comes amid growing interest in agentic AI, where AI agents perform tasks autonomously. ServiceNow’s platform, which already automates workflows, could see expanded use cases as businesses adopt more autonomous agents. The $130 price target reflects the bank’s view that ServiceNow is built for this new era. The report also noted that the same analyst who identified NVIDIA’s potential in 2010 recently named a list of top 10 stocks, though ServiceNow was not included in that specific selection. BofA also reinstated coverage of Salesforce (NYSE:CRM) in the same report, though details on that rating were not elaborated in the source material. The broader context highlights how traditional enterprise software firms are being reevaluated through the lens of AI adoption. BofA Reinstates Coverage on ServiceNow with Buy Rating, Highlighting Agentic AI Potential{随机描述}{随机描述}BofA Reinstates Coverage on ServiceNow with Buy Rating, Highlighting Agentic AI Potential{随机描述}

Expert Insights

The reinstatement by Bank of America underscores the evolving narrative around enterprise software stocks in the current AI cycle. Rather than viewing automation platforms as vulnerable to disruption from generative AI, BofA’s analysis suggests that ServiceNow may actually benefit as organizations build out autonomous agent capabilities. The $130 price target, while below recent trading levels in some cases, represents a long-term valuation anchored in the company’s ability to capture spending on AI-powered workflow tools. However, the fact that the same analyst’s top-10 picks did not include ServiceNow serves as a nuanced detail—it may indicate that while the stock is attractive, it is not among the most compelling near-term opportunities in the analyst’s view. Investors weighing this rating should consider that price targets and ratings are subject to change as market conditions and AI adoption rates evolve. The broader enterprise software sector could see further re-rating if agentic AI use cases gain traction, but adoption pace, competition from peers like Salesforce, and macroeconomic headwinds remain factors to monitor. ServiceNow’s role as a potential "control tower" for autonomous agents is an emerging thesis that may take quarters to materialize in financial results. As such, the Buy rating and $130 target should be viewed as a directional call based on the company’s strategic positioning rather than a near-term catalyst. BofA Reinstates Coverage on ServiceNow with Buy Rating, Highlighting Agentic AI Potential{随机描述}{随机描述}BofA Reinstates Coverage on ServiceNow with Buy Rating, Highlighting Agentic AI Potential{随机描述}