ServiceNow (NYSE: NOW) shares closed more than 2% higher today after Baird upgraded the company to Outperform from Neutral and raised its price target to $548.00 from $475.00.

The analysts believe the company is well positioned for a tough macro environment and that its revenue growth is likely to remain durable and resilient despite the uncertainties in the current macro environment, such as elongated sales cycles and increased deal scrutiny.

The upgrade is based on the company's end-market resiliency, durable growth trends, and reasonable valuation. The analysts are of the opinion that ServiceNow's 2023 guidance has been carefully considered with regard to the current macro environment and they also believe that the company's deals are less subject to discretion.