In a report released yesterday, Tyler Radke from Citi reiterated a Buy rating on ServiceNow (NOW – Research Report), with a price target of $1,160.00.
Tyler Radke has given his Buy rating due to a combination of factors that highlight ServiceNow’s growth potential and strategic positioning. The company’s recent Financial Analyst Day showcased its advancements in AI, CRM, and data offerings, with significant growth expected in these areas. ServiceNow’s Pro Plus SKU is projected to increase from $250 million in annual contract value today to $1 billion by 2026, while its CRM workflow is currently growing at a robust 30% year-over-year.
Additionally, ServiceNow’s financial targets, including a subscription revenue goal of over $15 billion by FY26 and margin expansion plans through FY27, indicate a solid growth trajectory. The company’s disciplined approach to mergers and acquisitions is expected to further bolster its market opportunities and drive sustained growth. With these strategic initiatives and financial targets in place, Radke believes ServiceNow is well-positioned for future success, justifying the Buy rating.
Radke covers the Technology sector, focusing on stocks such as NICE, Microsoft, and Adobe. According to TipRanks, Radke has an average return of 5.2% and a 50.41% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $1,085.00 price target.