William Blair analyst Arjun Bhatia has maintained their bullish stance on NOW stock, giving a Buy rating yesterday.
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Arjun Bhatia’s rating is based on ServiceNow’s impressive second-quarter performance, which surpassed consensus expectations across key metrics. The company demonstrated significant growth in constant-currency subscription revenue and saw a robust uptake of its new AI solutions, with Pro Plus deals including ITSM, CSM, and HR increasing by over 50% sequentially. Additionally, ServiceNow secured its largest Now Assist deal to date and achieved substantial growth in ITAM Now Assist ACV and average deal sizes.
Furthermore, the company’s AI Control Tower adoption exceeded its annual ACV target in just two months, showcasing strong momentum. Despite some budget tightening in the public sector, ServiceNow successfully closed new deals and maintained a conservative full-year outlook to navigate potential uncertainties. These factors contribute to Bhatia’s confidence in ServiceNow’s ability to meet its ambitious Now Assist and subscription revenue goals, justifying 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.
Based on the recent corporate insider activity of 179 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NOW in relation to earlier this year.