Derrick Wood, an analyst from TD Cowen, reiterated the Buy rating on ServiceNow (NOW – Research Report). The associated price target remains the same with $1,100.00.
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Derrick Wood has given his Buy rating due to a combination of factors that highlight ServiceNow’s strong performance and future potential. The company demonstrated impressive growth in its first-quarter current remaining performance obligations (cRPO), surpassing expectations and allowing management to adopt a more conservative stance on its U.S. Federal business while still maintaining a robust growth outlook. This approach reduces uncertainties related to federal contracts and instills confidence in the company’s ability to sustain growth.
Additionally, ServiceNow’s momentum in the AI product cycle remains strong, with significant increases in deal sizes and improvements in operational efficiencies. The company’s strategic acquisitions, such as Moveworks and Logik.io, are expected to enhance its AI capabilities and drive further growth. These factors, combined with the company’s ability to execute well in challenging markets like manufacturing, healthcare, and government, underpin Wood’s confidence in ServiceNow’s continued success and justify the Buy rating.
Wood covers the Technology sector, focusing on stocks such as Oracle, SAP AG, and ServiceNow. According to TipRanks, Wood has an average return of 11.9% and a 54.64% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $969.00 price target.