23% drop out of the "gold pit", French bank BNP Paribas upgraded the rating of ServiceNow (NOW.US) to "outperform the market".

Notice that the French Bank of Paris has upgraded its stock rating of ServiceNow (NOW.US) to "outperform the market" and raised its target price from $120 to $140. The bank stated that the recent decline in stock price "provides an investment opportunity." Analyst Stefan Slowinski wrote: "After experiencing a sell-off in 2025 and further intensifying this year (down 23% year-to-date), the risk/reward ratio of ServiceNow stock has become favorable. We believe software companies need to demonstrate stable core business, reliable AI revenue growth, and high-quality profit margins (with stock-based compensation SBC under control). We see these qualities in ServiceNow." After a thorough analysis, the analyst stated that he expects ServiceNow's organic subscription revenue growth rate to reach around 20% by the end of the 2026 fiscal year, higher than the approximately 18% guidance provided in the first quarter. Slowinski added: "If the speed of upgrading from the Standard and Professional editions to Pro Plus accelerates, and as customers start to return from purchasing Assist Pack, we see more upside potential."