Investment bank Canaccord Genuity today increased its price target on ServiceNow (NOW) stock to $1,075 from $900 after the company late yesterday reported stronger-than-expected first-quarter results.

Canaccord kept a Buy rating on the name.

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High Praise for NOW Stock

Calling NOW "one of the highest-quality names in large-cap software," Canaccord believes that the shares should be bought after their steep retreat since January.

Moreover, Canaccord considers NOW to be the best firm in its class, and it thinks that the tech firm's outlook is quite positive.

Another Bank Raised Its Price Target on NOW

Japanese bank Mizuho today increased its price target on NOW to $1,025 from $980 while keeping an Outperform rating on the shares. Mizuho believes that the company reported "genuinely good" results, and it thinks that the firm's GenAI offerings are growing at a solid pace.

And although Mizuho is worried about the economy, the bank thinks that NOW can accomplish its goals.

The Recent Price Action of NOW Stock

In the last month, the shares have jumped 12.5%, but they have retreated 18% in the last three months.

While we acknowledge the potential of NOW, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NOW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.