ServiceNow, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Saiyi He from CMB International Securities maintained a Buy rating on the stock and has a $1,175.00 price target.
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Saiyi He has given his Buy rating due to a combination of factors including ServiceNow’s impressive financial performance and strategic positioning. The company reported a significant increase in revenue and operating income for the second quarter of 2025, surpassing market expectations. This growth was largely driven by AI-enhanced efficiencies and strategic marketing timing, which contributed to a robust increase in subscription revenue and contract renewals.
Furthermore, ServiceNow’s strong demand for its AI solutions, despite macroeconomic uncertainties, underscores its potential for continued growth. The company’s AI-driven products have seen substantial adoption, with a notable increase in deal counts and customer usage. Additionally, the company’s focus on leveraging AI for operational efficiency has resulted in margin expansion, further supporting the positive outlook. These factors, combined with an optimistic revenue forecast and sector valuation increase, justify the Buy rating.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $1,200.00 price target.