Analyst Bradley Sills of Bank of America Securities maintained a Buy rating on ServiceNow, retaining the price target of $1,200.00.
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Bradley Sills has given his Buy rating due to a combination of factors that suggest a positive outlook for ServiceNow. The company is experiencing stable to improving demand in its core IT service management and operations categories, with strong upgrades and a healthy pipeline of pilot deals. Additionally, there is solid deal activity in the Federal sector and increasing adoption of ServiceNow’s HR solutions as enterprises rely on it as a strategic interface.
Furthermore, Sills notes the potential for a slight upside in Q3’s current remaining performance obligations growth, supported by favorable currency conditions. Despite broader concerns in the SaaS industry, ServiceNow’s strong performance and constructive Federal trends could alleviate investor worries, potentially leading to multiple expansion. The early-stage consolidation of the IT and custom applications industry, along with ServiceNow’s differentiated AI solutions, positions the company well for future growth, justifying the Buy rating and a price objective of $1,200.
In another report released today, Barclays also maintained a Buy rating on the stock with a $1,210.00 price target.