ServiceNow, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Derrick Wood from TD Cowen reiterated a Buy rating on the stock and has a $1,200.00 price target.
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Derrick Wood has given his Buy rating due to a combination of factors that highlight ServiceNow’s strong performance and potential for growth. The company is expected to report solid results for the third quarter, driven by robust execution in U.S. federal bookings and a positive outlook on AI adoption, which are anticipated to alleviate concerns over government spending uncertainties.
ServiceNow has demonstrated strength in its enterprise segment, with increased demand for AI-related workloads and a notable rise in average deal sizes due to product bundling and successful upgrades. Furthermore, the company’s innovations, such as the Workflow Data Fabric and AI Experience, along with strategic acquisitions, position it well for future opportunities in CRM and AI monetization. The positive feedback from commercial partners and significant deals with U.S. federal entities further support the optimistic growth outlook, reinforcing the Buy recommendation.
In another report released on October 21, Barclays also maintained a Buy rating on the stock with a $1,210.00 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.