ServiceNow’s Growth Potential and Strategic Confidence Justify Buy Rating

In a report released yesterday, Bradley Sills from Bank of America Securities maintained a Buy rating on ServiceNow (NOW – Research Report), with a price target of $1,085.00.

Bradley Sills has given his Buy rating due to a combination of factors that highlight ServiceNow’s potential for growth and profitability. The company’s steady execution against a large AI opportunity was emphasized during their Analyst Day, with initiatives such as AI success organization and AI Agent Orchestration offering promising to drive future growth. Additionally, ServiceNow’s hybrid subscription/consumption pricing model is expected to contribute positively to their financial performance.
Moreover, ServiceNow’s reiterated target of $15 billion in subscription revenue by FY26, despite challenging market conditions, demonstrates confidence in their strategic direction. The company also plans to achieve significant operating margin expansion by FY27, showcasing their ability to scale efficiently. The momentum from NowAssist, which has seen substantial upgrades and customer adoption, further supports the positive outlook. These elements combined suggest a strong potential for sustained growth, justifying the Buy rating and a price objective of $1,085.

Sills covers the Technology sector, focusing on stocks such as Microsoft, Salesforce, and HubSpot. According to TipRanks, Sills has an average return of 2.2% and a 49.62% success rate on recommended stocks.

In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $1,300.00 price target.