Macquarie analyst Frederick Havemeyer has maintained their bullish stance on NOW stock, giving a Buy rating today.
Frederick Havemeyer’s rating is based on ServiceNow’s impressive performance in the first quarter of 2024, which saw the company surpassing expectations in multiple financial metrics. Havemeyer appreciates the company’s ability to deliver strong results amidst a period when other tech companies are showing subdued earnings. He notes the significant year-over-year growth in subscription revenue and remaining performance obligations, alongside an impressive non-GAAP operating margin that not only beat the consensus but also showed considerable expansion from the previous year.
Havemeyer is also encouraged by ServiceNow’s robust adoption of its GenAI technology and the successful uptake of its Pro Plus offering, which is performing better than any prior product release. The growth trends and the closing of several large net-new ACV deals, especially in sectors like public sector, TMT, and Education, are also pivotal in his assessment. Despite the challenging economic environment, ServiceNow’s ability to maintain steady growth and investment in future potential, combined with its early enterprise adoption of GenAI, solidify Havemeyer’s confidence in the company, leading to his Buy rating with a maintained target price.
According to TipRanks, Havemeyer is an analyst with an average return of -4.0% and a 39.06% success rate. Havemeyer covers the Technology sector, focusing on stocks such as Microsoft, Salesforce, and ServiceNow.
In another report released today, BMO Capital also maintained a Buy rating on the stock with a $830.00 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.
