ServiceNow, Inc. (NYSE:NOW) is under scrutiny by UBS, which lowered its price target to $1,075.00 from $1,100.00 ahead of the company’s third-quarter earnings report. The firm conducted partner and customer checks, revealing solid core business performance but disappointing feedback on AI adoption.

While ServiceNow offers a cloud-based software platform for business workflows, UBS notes mixed feedback on AI adoption. The stock is trading at 36x CY26 for ~20% growth, with potential downside limited. UBS suggests exploring other AI stocks for greater upside potential and less downside risk.

Investors are advised to consider other AI stocks for better returns, as ServiceNow faces some challenges in AI adoption. The company’s core business performance is solid, but the feedback on AI is less positive. With cautious sentiment in the SaaS/apps sector, exploring other investment options may be beneficial.

Read more at Yahoo Finance: ServiceNow’s (NOW) Core Business Solid, AI Adoption Disappoints Slightly