J.P. Morgan analyst Mark Murphy has maintained their bullish stance on NOW stock, giving a Buy rating today.
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Mark Murphy has given his Buy rating due to a combination of factors, primarily driven by ServiceNow’s strong business momentum and strategic focus on AI and industry-specific solutions. Despite a cautious demand environment, ServiceNow’s partners report no slowdown in demand, with substantial year-over-year growth in both revenue and headcount dedicated to ServiceNow solutions. This growth is attributed to the increasing adoption of AI-driven automation tools, which are seen as providing significant ROI for clients.
Additionally, there is a notable increase in pilot projects for ServiceNow’s AI offerings, indicating strong client interest and potential for further expansion. ServiceNow’s commitment to developing industry-specific solutions further diversifies its growth opportunities, aligning with the company’s broader platform vision. The company’s messaging around cost savings and quick time-to-value resonates well in the current economic climate, supporting the Buy rating as ServiceNow is expected to exceed its 2025 targets.
Murphy covers the Technology sector, focusing on stocks such as Microsoft, Intuit, and ServiceNow. According to TipRanks, Murphy has an average return of 11.6% and a 59.15% success rate on recommended stocks.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $1,300.00 price target.