Guggenheim Adjusts Price Target on ServiceNow to $175 From $125

BMO Capital Markets added Dynatrace (DT) and ServiceNow (NOW) to its top software picks for 2026, maintaining Outperform ratings and raising price targets for both. Okta (OKTA) was also included, with the analyst noting higher expectations ahead of its earnings. ServiceNow's performance obligations are expected to grow 20% YoY in Q3, with organic growth potentially reaching 20%.

Salesforce (CRM) shares fell 2% to $238.57 after announcing a $5.66B all-cash deal to acquire Braze (BRZE). The acquisition aims to enhance Marketing Cloud's personalization, but the cash outlay and integration risks weigh on the stock. Rival software stocks like ServiceNow (NOW) and Adobe (ADBE) gained 2%. Regulatory and shareholder approvals are pending.

ServiceNow (NOW) shares rose 1% premarket as Bernstein raised its price target to $266, the highest on the Street, citing AI adoption growth. Analyst Peter Weed expects revenue growth to accelerate to nearly 20% by Q4, driven by AI-native products. Over 80% of recent contracts involve AI, with pricing 20-30% higher. Bernstein increased fiscal 2027-2028 estimates, anticipating 1-2% revenue boost from AI. NOW's earnings next week could test AI-driven growth sustainability.

BMO Capital Markets added ServiceNow (NOW) and Gartner (DT) as new Top Picks, raising their price targets. Analyst Keith Bachman cited favorable near-term setups and steady growth prospects. ServiceNow's security acquisitions, Armis and Veza, are outperforming expectations, contributing to significant deals and revenue.

Bank of America upgraded Salesforce (CRM) to Buy, raising its price target to $285, citing AI adoption and strong free cash flow. Barclays downgraded Dell (DELL), HPE (HPE), NetApp (NTAP), HubSpot (HUBS), and monday.com (MNDY) due to AI growth concerns. Deutsche Bank upgraded Walmart (WMT) to Buy, targeting $136, citing inflation benefits. RBC downgraded GoDaddy (GDDY) to Sector Perform, citing AI's impact. MongoDB (MDB) ratings reaffirmed by Needham and BofA.

ServiceNow (NYSE:NOW) shares rose 5.33% to $147.445 after launching AI Passport, a tool to manage AI agent permissions. The company reported $1B in AI annual contract value and $3.877B in Q2 subscription revenue. AI Passport is expected to launch in Q4 2026, but revenue impact remains uncertain.