RBC Capital analysts raised their price target for ServiceNow (NYSE:NOW) to $1,210 from $1,045, reaffirming an Outperform rating on the stock. The increase reflects confidence in the company’s ability to sustain long-term growth, driven by its expanding role in enterprise operations and the ongoing integration of generative AI technologies.

ServiceNow is positioned as a gold-standard investment for the next 5-10 years, with profitable, primarily organic growth expected to continue. The company is evolving beyond its IT origins, offering a platform that enables enterprises to build custom SaaS applications for HR, finance, legal, facilities, and procurement. This broadening scope positions ServiceNow as a key player in the enterprise software market.

The $1,210 price target is based on a 19x EV/revenue multiple for 2025, representing a slight premium to peers due to ServiceNow’s superior growth and margin profile. On a free cash flow basis, this translates to a 60.5x EV/2025 FCF multiple.

With generative AI in its early stages, ServiceNow is well-positioned to capitalize on this transformative technology over the next decade, supporting its trajectory as a foundational platform for enterprise innovation.