BofA analysts lifted the firm's price target for Buy-rated ServiceNow (NYSE:NOW) to $800 from $750 per share in a note Thursday, saying there is growing interest in the company's Pro Plus AI offering.
In addition, analysts stated they see broad strength across suites and verticals at the company. "We spoke with nearly a dozen key SI partners in recent weeks, and feedback suggests solid Q4 deal activity, largely exceeding expectations," said the analysts.
"Commentary suggests balanced strength across the IT, employee and customer suites, and industry verticals," they added. "The healthcare, life sciences, financial services and technology verticals stand out as particularly strong."
BofA also pointed to channel feedback suggesting easing macro pressure, with some partners saying that deal activity is benefitting from pent-up demand.
"We noted growing interest in the new Pro Plus offering for AI and observability, though partners describe this an interest as opposed to tangible pipeline at this point. Commentary suggests healthy pipeline builds for 2024," analysts concluded.
NOW shares are up over 2% premarket.