Shares of IT service provider ServiceNow (NOW) - Get Report  rose more than 4% Wednesday to $266.48 after the company was the subject of a bullish note from Stifel, which upgraded the stock to buy from hold.

The firm also lifted the stock's price target to $320 from $290, which represents a potential 25% upside from the stock's previous closing price on Tuesday. 

Stifel believes that there won't be a slowdown in the company's business thanks to newer products that should keep the company growing for several years. Stifel also noted that early investors who got in at the company's $18 price target in 2012 have enjoyed a 1,300% upside. 

Analyst Tom Roderick said he believes that the company's lineup of products will allow it to maintain 25% to 30% revenue growth over the next few years. 

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"From our vantage point, there's only so long you can sit outside a party, watching everyone else having fun and wondering what it's like in the party. In the face of some recent fundamental uncertainty and a CFO transition that has left other investors nervous,
we'll happily join the festivities while offering our two cents: we don't think the business is slowing in a way that some investors fear," Roderick said. 

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