In a report released yesterday, Karl Keirstead from UBS maintained a Buy rating on ServiceNow, with a price target of $1,075.00.
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Karl Keirstead has given his Buy rating due to a combination of factors including the solid performance of ServiceNow’s core business and the potential for increased IT budgets. Despite mixed feedback on AI adoption, which aligns with broader industry trends, the core business checks suggest a stable outlook. The anticipated loosening of IT budgets could lead to increased spending in the latter part of the year, providing a favorable environment for ServiceNow’s growth. This potential budget increase, coupled with an expected revenue growth of 19-20% in 2026, supports the Buy rating. Although AI adoption feedback was not as positive as hoped, ServiceNow’s optimistic projections for AI annual contract value growth remain a positive factor. The stock’s current trading multiple and its comparison to peers also contribute to the Buy recommendation, despite a slight reduction in the price target.
In another report released today, Barclays also maintained a Buy rating on the stock with a $1,210.00 price target.
Based on the recent corporate insider activity of 181 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.