Derrick Wood, an analyst from TD Cowen, reiterated the Buy rating on ServiceNow. The associated price target was lowered to $140.00.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Derrick Wood has given his Buy rating due to a combination of factors, including resilient demand trends, strengthening AI adoption, and favorable partner feedback that points to solid large‑deal momentum and robust cross‑sell of core products. He views the recent pricing and packaging changes, especially the embedding of Now Assist across new SKU tiers, as a strategic catalyst that should broaden AI usage, enhance monetization levers, and move more customers into higher‑value bundles.
At the same time, he expects ServiceNow to deliver a beat‑and‑raise quarter, supported by constructive checks on growth, accelerating AI ACV, and healthier renewal uplift than last year with no evidence of AI‑driven seat reductions. With the stock down sharply since the last earnings print and now trading around 17x EV to projected 2026 free cash flow for a company still growing revenue roughly 20%, he sees current valuation as compelling versus the risk/reward and reiterates a Buy with a $140 price target.
Wood covers the Technology sector, focusing on stocks such as SAP AG, Microsoft, and Salesforce. According to TipRanks, Wood has an average return of -2.2% and a 41.85% success rate on recommended stocks.
In another report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $130.00 price target.