Peter Weed, an analyst from Bernstein, maintained the Buy rating on ServiceNow (NOW – Research Report). The associated price target was lowered to $1,003.00.
Peter Weed’s rating is based on ServiceNow’s strong performance in the face of economic uncertainties. Despite recessionary concerns and potential risks from US Federal revenue, the company exceeded revenue expectations in Q1’25, which indicates its robust market positioning. The management’s slight adjustment to the full-year guidance was strategic, aiming to account for potential downturns in specific sectors while still showcasing confidence in achieving significant revenue growth by 2026.
Moreover, ServiceNow’s innovative GenAI offerings have shown rapid adoption, significantly boosting deal values and customer engagement. The company’s focus on efficiency and cost-saving solutions has resonated well with industries like manufacturing, which are prioritizing these aspects during uncertain times. This strategic positioning, combined with internal efficiencies gained through AI tools, supports the potential for continued success, justifying the Buy rating.
Weed covers the Technology sector, focusing on stocks such as Zscaler, ServiceNow, and Datadog. According to TipRanks, Weed has an average return of 3.1% and a 47.56% success rate on recommended stocks.
In another report released on April 22, Citi also maintained a Buy rating on the stock with a $1,082.00 price target.