William Blair analyst Arjun Bhatia has maintained their bullish stance on NOW stock, giving a Buy rating on October 26.
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Arjun Bhatia has given his Buy rating due to a combination of factors that highlight ServiceNow’s strong performance and promising future prospects. The company reported impressive third-quarter results, surpassing expectations in key areas such as constant-currency cRPO growth and U.S. federal business performance. This growth was driven by a significant uptake in their new AI solutions, including Now Assist, which has seen substantial customer adoption and deal closures.
Furthermore, ServiceNow’s innovative products like AI Control Tower, RaptorDB, and Workflow Data Fabric are experiencing rapid growth, with deal volumes increasing significantly. Management’s optimistic outlook, expecting Now Assist ACV to exceed $500 million by 2025 and aiming for $1 billion by 2026, underscores the company’s potential. The initial price uplift from AI SKUs and the anticipated ramp-up of usage-based revenue streams further support the Buy rating, positioning ServiceNow as a key player in the AI sector.
According to TipRanks, Bhatia is a 2-star analyst with an average return of 0.3% and a 41.45% success rate. Bhatia covers the Technology sector, focusing on stocks such as Atlassian, Sprout Social, and Zoom Video Communications.
In another report released on October 26, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $1,200.00 price target.