ServiceNow, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Bradley Sills from Bank of America Securities reiterated a Buy rating on the stock and has a $1,200.00 price target.
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Bradley Sills has given his Buy rating due to a combination of factors including ServiceNow’s impressive Q2 results, which surpassed key growth metrics. The company’s backlog growth exceeded expectations, demonstrating strong execution in its core IT business. Additionally, the diversity of strength across various verticals such as transportation, technology, and retail, along with the promising AI product cycle, highlights the company’s robust business model.
Furthermore, ServiceNow’s platform strength and early-stage consolidation of a large total addressable market (TAM) in IT and custom applications underscore its potential for long-term growth. The AI cycle is expected to catalyze further platform expansion into large enterprises, enhancing revenue prospects. Consequently, Sills has increased the price objective to $1,200, reflecting better long-term growth visibility from AI offerings.
In another report released today, Barclays also maintained a Buy rating on the stock with a $1,210.00 price target.