Guggenheim Raises ServiceNow (NOW) Rating to Neutral After Stock Slide

ServiceNow, Inc. (NYSE:NOW) ranks among the best AI stocks to bargain according to analysts. Guggenheim upgraded ServiceNow, Inc. (NYSE:NOW) from Sell to Neutral connected December 16, stating that the stock’s caller descent brought it backmost into just worth contempt the brokerage’s informing that the institution inactive faces structural issues.

The steadfast claims that valuation, not an improving outlook, was the driving unit down the upgrade. Although ServiceNow, Inc. (NYSE:NOW) has consistently reported beardown quarterly results, the institution has not been capable to support up with its peers, which has weakened the statement for betting against it and prevented it from recreating a compelling maturation narrative.

The steadfast identified 2 superior concerns that are affecting ServiceNow’s sentiment. Firstly, it stated that though absorption has highlighted artificial quality arsenic a large maturation driver, expectations surrounding AI person not yet converted into important revenue.

It besides highlighted the increasing hazard associated with acquisitions. Just this year, ServiceNow, Inc. (NYSE:NOW) has completed a fig of transactions and is reportedly considering a acold larger acquisition of a information bundle firm.

According to Bloomberg, ServiceNow, Inc. (NYSE:NOW) is successful negotiations to acquisition cybersecurity steadfast Armis. The acquisition mightiness scope astir $7 billion, making it ServiceNow’s largest acquisition to date.

ServiceNow, Inc. (NYSE:NOW) provides a cloud-based level that helps organizations automate and negociate integer workflows crossed IT, HR, lawsuit service, and different concern functions.

While we admit the imaginable of NOW arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.