ServiceNow Rallies 4% on BofA $130 Price Target and Growth Forecast
Software stocks surged for a fourth straight session with ServiceNow rallying about 4% alongside the iShares Expanded Tech-Software ETF’s 1.1% gain as investors reassess AI risks. Bank of America restarted ServiceNow coverage with a Buy rating and $130 target, forecasting 18–22% revenue growth through 2028 and 35–37% free cash flow margins.
1. Software Sector Rebounds
U.S. software stocks climbed for a fourth consecutive session, with the iShares Expanded Tech-Software ETF up 1.1% to its highest since January. ServiceNow shares rose around 4% alongside Workday and Salesforce gains between 3.7% and 4.3%, reflecting a shift as investors reassess AI’s threat and potential productivity benefits.
2. Bank of America Coverage
Bank of America restarted coverage of ServiceNow with a Buy rating and $130 price target, forecasting revenue growth of 18–22% through 2028 and free cash flow margins of 35–37%. Analysts cited strong cRPO growth above 20% for five quarters, platform expansion, budget wins and AI monetization as drivers of margin expansion and valuation support.