ServiceNow shares benefit from analyst price target increases driven by stable-to-improving demand and larger customer deals, though conviction varies between buy and neutral ratings.

Next, we look at ServiceNow with some leverage in the price targets. This is correct. But there are varying levels of conviction about this stock .

However, investors here are very much welcoming the increase in price targets . ServiceNow shares are up more than 2%. Stifel raised its price target for the stock to $160 from $120.

It maintains the " buy" rating. That's a significant increase in their target, and it's clearly going to be a jump from our current level for ServiceNow, where we stand at around 139, or slightly above 139.

UBS raised its target to 150 from 110 , but remains neutral on the stock. Both companies clearly see more room for upside from this point.

But for UBS, it should be noted that they spoke of demand trends that appear to be stable to slightly improving, but this does not mean for them that there is sufficient conviction to move to a "buy" rating.

As for Stifel, what fuels their optimism there is their talk of channel checks, which we often refer to when sell-side analysts look at companies and weigh up what to do about the target price.

They said, " Look, ServiceNow seems to be doing well with its customers." Corporate spending is slightly better than in the previous quarter here. There are encouraging signs as they see bigger deals, and existing customers expanding upon renewal.

So, it's not just about renewal, but an increase in the amounts they use to renew.

Also, a greater reliance on advanced products.” So, it’s clear that customers are willing to spend more money on ServiceNow even with some concerns about its AI offerings.

We know that ServiceNow was one of the companies hit hard during the SaaS-pocalypse. There was a view, particularly from the CEO, that ServiceNow wasn’t worth getting carried away with . But today, it’s seeing increased demand.