Bank of America Boosts Valuations on ServiceNow (NOW), Snowflake (SNOW), and 8 Other Software Stocks

Key Takeaways

• Bank of America Securities increased price targets across 10 software companies as AI disruption fears diminish and market sentiment improves
• ServiceNow’s target climbed to $150, Snowflake to $395, while Figma rose to $33
• Tal Liani, BofA analyst, maintained Buy recommendations for ServiceNow, Figma, Snowflake, Box, Asana, and Zeta Global
• Adobe maintained its Underperform rating due to intensifying AI-driven competition in its primary business segments
• Each of the 10 companies has surged a minimum of 41% from their yearly lows

The software industry has faced significant headwinds throughout 2025. Market analysts have expressed growing concerns that emerging artificial intelligence technologies could disrupt and potentially supplant critical software capabilities, a phenomenon dubbed the “Saaspocalypse” by industry observers.

However, market dynamics have evolved considerably in recent trading sessions. A notable recovery is taking shape throughout the software sector, prompting Bank of America Securities analyst Tal Liani to elevate price targets across 10 different software companies.

According to Liani, these adjustments represent “broad-based multiple expansion across software,” while core financial estimates and fundamental assessments remain unchanged.

The analyst attributed the sector’s resurgence to robust quarterly results from certain infrastructure software providers, diminishing anxieties about AI-related disruption, and strengthening confidence among investors in both large-capitalization and application software segments.

The updated price objectives are as follows: ServiceNow elevated to $150 from $130, Figma increased to $33 from $30, Workday boosted to $205 from $140, Adobe raised to $220 from $190, Amplitude lifted to $14 from $12, GitLab upgraded to $45 from $38, Snowflake enhanced to $395 from $330, Box improved to $39 from $37, Zeta Global raised to $34 from $29, and Asana adjusted to $10.75 from $9.

ServiceNow, Inc., NOW

All ten equities have surged a minimum of 41% above their respective 52-week closing lows. Adobe has advanced 41% since reaching $193.41 on June 25. ServiceNow has rallied 52% from its April trough of $83. Figma has jumped 59% from its June bottom of $16.84.

BofA’s Top Software Picks

Liani reaffirmed Buy ratings on ServiceNow and Figma within the large-cap software category. The analyst highlighted their superior growth trajectories and what he characterized as promising AI revenue opportunities taking shape.

Within infrastructure software, Snowflake retained its Buy recommendation. Liani emphasized its sustained robust expansion and potential for AI-related revenue generation. GitLab and Amplitude both maintained Neutral ratings.

Among application software companies, Box, Asana, and Zeta Global all received Buy ratings. Liani characterized their growth characteristics as sustainable, with nascent AI monetization prospects emerging.

Workday remained at Neutral while Adobe stayed at Underperform. Liani noted that for both companies, recent share price appreciation has exceeded tangible evidence of fundamental growth acceleration.

Adobe Confronts Steeper Challenges

Adobe represents the most concerning case within the group. The stock has declined 23% year-to-date, and Liani anticipates ongoing pressure.

The analyst highlighted that artificial intelligence is democratizing content creation while enabling lower-cost, AI-native competitors to enter the market. He also observed that AI-focused annual recurring revenue accounts for less than 2% of Adobe’s total ARR and has not yet generated measurable growth acceleration.

ServiceNow shares have also retreated 17% this year, although the company’s AI monetization narrative has garnered greater conviction from Bank of America.

Earnings season for software companies looms ahead. Market participants will scrutinize whether these firms can demonstrate genuine customer demand and tangible revenue generation from their proprietary AI offerings.

The upcoming quarterly reports will prove critical in determining whether the current software sector recovery possesses genuine momentum or represents a temporary bounce.