Wall Street Upgrade: ServiceNow grabbed headlines on September 24, 2025 when Morgan Stanley upgraded the stock to Overweight and boosted its price target from $1,040 to $1,250 tipranks.com. The analysts argued that fears of generative AI “disruption” and U.S. federal budget cuts are overdone, obscuring ServiceNow’s strong performance investing.com. In fact, ServiceNow’s platform is seen as benefiting from AI: the company is “well positioned to deliver generative AI capabilities,” creating an attractive risk/reward outlook tipranks.com. Morgan Stanley noted ServiceNow’s “consistent” execution and forecast the company can sustain ~20% subscription revenue growth with over 20% free cash flow gains through FY2027 tipranks.com. The upgrade came despite a sluggish stock in recent months – a sign that analysts expect a rebound as ServiceNow’s AI strategy pays off.