The research firm believes that ServiceNow’s moat came from “a combination of its platform architecture, deep enterprise integration, high switching costs, a strong brand, and vertical specialization."

ServiceNow (NOW) stock received a bullish recommendation from a Wall Street firm, with the end-to-end intelligent workflow, automation platform solutions company also making the cut for addition to the firm’s “Best-of-Breed Bison initiative.”

The addition to the list was reportedly due to the Santa Clara, California-based meeting of 10 of the 12 criteria required to qualify for this designation. 

According to investing.com, DA Davidson believes ServiceNow’s moat came from “a combination of its platform architecture, deep enterprise integration, high switching costs, a strong brand, and vertical specialization."

The research firm expects the company to expand its market share beyond its traditional IT service management market due to its “best-in-breed” platform and artificial intelligence (AI) capabilities. 

ServiceNow is “in the early stages of disrupting the CRM market which is undergoing a once in a generation shift due to AI,” analysts at the firm said.

DA Davidson analyst initiated coverage of the ServiceNow stock with a ‘Buy’ rating with a $1,150 price target, implying over 15% upside potential.

In late April, the company announced better-than-expected quarterly results, riding on tailwinds from the AI boom. A month earlier, it announced an agreement to acquire Mountain View, California-based agentic AI assistant provider Moveworks, for $2.85 billion in cash and stock.

On Stocktwits, retail sentiment toward the stock was ‘bullish’ (60/100) by early Wednesday, with the message volume at ‘high’ levels.

NOW sentiment and message volume as of 5:23 a.m. ET, June 25 | source: Stocktwits

One bullish watcher hoped the stock would pull back from the $1,000 level so that they can accumulate more shares.

Another watcher said they bought more shares and flagged $1,250 as the next stop. “They are killing it in the AI-enabled digital workflow space!” they said.

ServiceNow stock is down over 6% year-to-date, underperforming the broader market.

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