Guggenheim upgrades ServiceNow to Buy with $125 target on valuation

Guggenheim analyst John DiFucci raised ServiceNow to Buy from Neutral with a $125 price target. He said he was not upgrading because he sees ServiceNow as an AI winner; he expects AI monetization to disappoint and acted because the shares had become cheap. He argued the company is comfortably profitable and can keep growing at a double-digit pace. StockStory reported that the shares rose about 6.8% in the afternoon session.

• Rating changed from Neutral to Buy; price target $125
• Upgrade rationale was valuation, not an AI-winner view
• Stock reported up about 6.8% in the afternoon session