03:15 PM EST, 01/14/2025 (MT Newswires) -- ServiceNow's ( NOW ) partners indicated in the latest checks that the company's performance remains in line or slightly better than three months ago, UBS Securities said in a note emailed Tuesday.

The company has benefited from robust partner contributions and the factors that could drive an upside to estimates, including a larger-than-expected year-end flush and improving feedback for ServiceNow's ( NOW ) AI products, such as Now Assist AI.

These developments, alongside ServiceNow's ( NOW ) strong execution and track record, contribute to a positive outlook into 2025, according to the note.

While European operations face challenges due to macroeconomic pressures, these have not significantly impacted the region's overall growth rates, according to the note.

UBS highlighted that concerns about Europe, which accounts for 25% of ServiceNow's ( NOW ) revenue, were outweighed by the company's strong track record and AI monetization progress.

"Sentiment remains solid given ServiceNow's ( NOW ) track record, AI monetization success, and the overall good tone from management on the Nov/Dec conference circuit," UBS said.

ServiceNow ( NOW ) is uniquely positioned to capitalize on generative artificial intelligence opportunities in 2025, bolstering its valuation, while improvement in feedback on the Now Assist AI product further enhances growth prospects, the firm added.

UBS has a buy rating on ServiceNow's ( NOW ) stock with a $1,300 price target.

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