ServiceNow, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Keith Weiss from Morgan Stanley reiterated a Buy rating on the stock and has a $1,315.00 price target.
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Keith Weiss has given his Buy rating due to a combination of factors that highlight ServiceNow’s strong performance and promising future prospects. The company reported a significant year-over-year growth in current remaining performance obligations (cRPO), surpassing expectations and demonstrating robust demand. Notably, the U.S. Federal sector showed impressive net-new annual contract value (ACV) growth, alleviating previous investor concerns.
Additionally, ServiceNow’s ability to secure large deals, including several over $10 million, underscores its strong market position. The company’s advancements in artificial intelligence (AI) monetization are also noteworthy, with AI ACV expected to exceed $500 million by 2025 and potentially reaching $1 billion by 2026. These factors, combined with strong execution and financial performance, position ServiceNow as a leader in the AI workflow space, justifying the Buy rating.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $1,150.00 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.