Analyst Derrick Wood from TD Cowen maintained a Buy rating on ServiceNow and keeping the price target at $1,150.00.
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Derrick Wood has given his Buy rating due to a combination of factors that suggest ServiceNow is well-positioned for future growth. Despite some weaker data from the US Federal sector, the company has shown strong performance in the enterprise segment, particularly with its AI-related projects. The traction with its GenAI product cycle and favorable foreign exchange trends are expected to provide additional support for the company’s financial performance.
Furthermore, ServiceNow has demonstrated a solid track record with a notable beat in its first-quarter results and has set a lower guidance bar, which could lead to a beat and raise scenario in the upcoming quarters. The company’s strategic positioning for the second half of the year, along with a strong pipeline and increased sales hiring, indicates potential for continued growth. These factors, combined with the constructive feedback from global system integrator partners, underpin Wood’s confidence in maintaining a Buy rating for ServiceNow.
In another report released yesterday, Oppenheimer also reiterated a Buy rating on the stock with a $1,100.00 price target.