Morgan Stanley analyst Keith Weiss maintained a Hold rating on ServiceNow (NOW – Research Report) yesterday and set a price target of $960.00.
Keith Weiss’s rating is based on a combination of factors surrounding ServiceNow’s recent strategic moves and market positioning. The acquisition of Moveworks for $2.85 billion is a significant step for ServiceNow, enhancing its capabilities in AI-driven workflow automation across various sectors like IT, HR, and finance. While this acquisition strengthens ServiceNow’s offerings, it also raises questions about the pace of its organic growth, as the company increasingly relies on acquisitions to expand its technological capabilities.
Additionally, the integration of Moveworks’ solutions, including its proprietary Agentic AI reasoning engine, could bolster ServiceNow’s competitive edge in the enterprise search market. However, these strategic expansions also suggest increased competition with established players like Salesforce. Given these dynamics, Keith Weiss has opted for a Hold rating, reflecting a cautious stance as the company navigates these transformative changes and their potential impact on its market position and growth trajectory.
NOW’s price has also changed slightly for the past six months – from $860.150 to $783.830, which is a -8.87% drop .