ServiceNow Poised for Growth: Buy Rating Backed by Strong Financials and Market Potential

Jefferies analyst Samad Samana maintained a Buy rating on ServiceNow (NOW – Research Report) today and set a price target of $900.00.

Samad Samana has given his Buy rating due to a combination of factors surrounding the financial performance and market potential of ServiceNow. He anticipates a modest increase in constant currency subscription revenue and cRPO for the first quarter of 2024, indicating robust customer demand, as evidenced by the high interest shown at the Federal Forum in late March. Additionally, a slower pace in hiring is expected to contribute to margin growth, which further solidifies the positive outlook for ServiceNow’s financial health.
Furthermore, Samana expects ServiceNow to revise their full-year subscription revenue guidance upwards, reflecting a strong fiscal position. Although the second-quarter cRPO guidance is projected to align with expectations, the overall setup for ServiceNow appears favorable. This is especially true considering the proximity of the Analyst Day to the first-quarter results, which may serve as an additional positive catalyst, potentially propelling the stock’s value and justifying the Buy rating.

Samana covers the Technology sector, focusing on stocks such as HubSpot, ServiceNow, and CCC Intelligent Solutions Holdings. According to TipRanks, Samana has an average return of 4.2% and a 47.92% success rate on recommended stocks.

In another report released on April 19, TD Cowen also reiterated a Buy rating on the stock with a $870.00 price target.

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ServiceNow (NOW) Company Description:

Founded in 2004 and based in California, ServiceNow, Inc. is a software company which provides enterprise cloud computing solutions to help companies manage digital workflows for enterprise operations. The company offers its solutions to various sectors including healthcare, education, oil and gas, telecommunications, government, consumer products, technology, IT and financial services.