TD Cowen analyst Derrick Wood has maintained their bullish stance on NOW stock, giving a Buy rating yesterday.
Derrick Wood has given his Buy rating due to a combination of factors that suggest a positive outlook for ServiceNow despite some challenges. The company is expected to report an in-line first quarter, which, although a step down from its usual performance, is anticipated to be better than feared given the current macroeconomic conditions. Encouraging signs include strong federal bookings and a solid increase in sales headcount, indicating robust demand and expansion potential.
Additionally, while there are some concerns related to government deals and DOGE, the adoption of ServiceNow’s Pro Plus and NOW Assist products is gaining traction, contributing to a favorable growth outlook. The company’s recent acquisitions and favorable foreign exchange trends provide additional support to its financial performance. Although the stock has seen a decline since January, the expected better-than-feared first quarter results and strategic initiatives underpin the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $1,025.00 price target.