Truist Financial analyst Joel Fishbein upgraded the rating on ServiceNow (NOW – Research Report) to a Buy today, setting a price target of $1,200.00.
Joel Fishbein has given his Buy rating due to a combination of factors that highlight ServiceNow’s strong positioning in the enterprise IT landscape. The company is seen as a rare compounder, leveraging its platform architecture to drive durable growth through upselling and cross-selling to large enterprises. The current market pullback is viewed as an opportunity to invest in ServiceNow shares, as the company’s platform advantage is expected to yield both offensive and defensive benefits in a volatile market.
ServiceNow’s leadership in AI is another critical factor in Fishbein’s positive outlook. The company’s traction with pre-built AI tools, particularly the Pro Plus SKU, is anticipated to build momentum, supported by its strong connectivity within IT organizations. Additionally, the de-risking of the federal vertical in their guidance and the company’s ability to sustain a premium valuation further justify the Buy rating. Despite the high valuation, ServiceNow is considered a generational compounder, with expectations of high-teens revenue growth over the next five years, warranting the premium it commands in the market.
According to TipRanks, Fishbein is a 5-star analyst with an average return of 14.3% and a 57.28% success rate. Fishbein covers the Technology sector, focusing on stocks such as CrowdStrike Holdings, Snowflake, and Palo Alto Networks.