Analyst Brad Reback from Stifel Nicolaus maintained a Buy rating on ServiceNow and decreased the price target to $1,150.00 from $1,200.00.
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Brad Reback has given his Buy rating due to a combination of factors, including ServiceNow’s impressive performance in the recent quarter. The company exceeded its constant currency current remaining performance obligations (CC cRPO) growth expectations by 250 basis points, driven by strong enterprise execution and robust federal performance. Additionally, ServiceNow’s operating margin was significantly better than anticipated, thanks to efficiencies from generative AI and strategic cost management.
Looking ahead, despite conservative guidance for the fourth quarter due to potential government-related delays, ServiceNow is well-positioned to continue its high-teens organic growth and margin expansion. The company is expected to benefit from a large renewal cohort, which supports the outlook for ongoing improvements in operating income and free cash flow. These factors collectively underpin Reback’s positive outlook on ServiceNow’s stock.
In another report released today, Needham also maintained a Buy rating on the stock with a $1,200.00 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.