On Oct 18, major Wall Street analysts update their ratings for $ServiceNow (NOW.US)$, with price targets ranging from $980 to $1,068.
Citi analyst Tyler Radke maintains with a buy rating, and adjusts the target price from $915 to $1,068.
Mizuho Securities analyst Gregg Moskowitz maintains with a buy rating, and sets the target price at $980.
Oppenheimer analyst Brian Schwartz maintains with a buy rating, and adjusts the target price from $825 to $1,020.
JMP Securities analyst Patrick Walravens maintains with a buy rating, and adjusts the target price from $850 to $1,000.
Furthermore, according to the comprehensive report, the opinions of $ServiceNow (NOW.US)$'s main analysts recently are as follows:
The firm remains optimistic about ServiceNow, citing confidence in the company's ability to navigate through unpredictable IT budget scenarios with a sturdy core business and potential upsell opportunities from emerging generative artificial intelligence. The firm's recent fieldwork indicates solid performance from the company. Despite the stock's significant gains and the absence of transformational deals noted in its fieldwork, as well as data pointing to a more subdued U.S. federal quarter based on challenging comparisons, the firm expresses a more cautious stance without a short-term positive outlook.
The firm's third-quarter software evaluations were robust, albeit with certain considerations. The demand for cybersecurity remained strong and the adoption of generative artificial intelligence exhibited more promising indications, despite some inconsistent consumption data. More encouragingly, insights from partners suggest a positive outlook for a strong fourth quarter. Several price targets have been revised upwards to mirror elevated comparative multiples and, in some cases, enhanced fundamentals.
ServiceNow demonstrated commendable execution and recorded a robust third quarter. However, the anticipation for the upcoming earnings is less promising as share multiples seem to have already accounted for the positive third quarter results and a significantly successful forecast for the forthcoming twelve months. There is also a lofty expectation for subscription revenue growth by 2025. It is believed that the management's guidance for the fourth quarter may not lead to an increase in growth estimates and might disappoint investors. Despite this, the third quarter earnings report is expected to solidify the prevailing favorable view of the company's business momentum and its solid fundamental growth.
ServiceNow is anticipated to report a slight overperformance compared to consensus estimates for subscriber revenue and remaining performance obligations. It is expected that the company will provide updates on artificial intelligence and the progress of new products. Additionally, there is a keen interest in understanding the potential risks to the Federal business associated with a key partner. A strong report is expected, but the response from the stock may be more subdued compared to the previous quarter, taking into account the current stock valuation. ServiceNow continues to be regarded as a top pick among large-cap companies.
Here are the latest investment ratings and price targets for $ServiceNow (NOW.US)$ from 4 analysts:
Note:
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