Keith Bachman, an analyst from BMO Capital, maintained the Buy rating on ServiceNow. The associated price target is $1,150.00.
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Keith Bachman has given his Buy rating due to a combination of factors that highlight ServiceNow’s solid financial performance and growth potential. The company reported strong results in the September quarter, with subscription revenue and current remaining performance obligations (CRPO) exceeding expectations. Despite a slightly disappointing forecast for subscription revenue growth in the fourth quarter, ServiceNow’s broad-based AI opportunities and mature AI portfolio are expected to support sustained growth.
Furthermore, ServiceNow’s ability to maintain healthy deal sizes and increasing attach rates, along with a robust pipeline, reinforces its growth prospects. The management’s guidance for improved operating and free cash flow margins, along with a stable gross margin, also contributes to a positive outlook. These elements combined suggest that ServiceNow is well-positioned to leverage its large installed base and drive growth in both its core IT service management market and new product areas.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $1,200.00 price target.
NOW’s price has also changed slightly for the past six months – from $942.860 to $911.700, which is a -3.30% drop .