ServiceNow initiated with an Outperform at Scotiabank

Scotiabank initiated coverage of ServiceNow (NOW) with an Outperform rating and $1,230 price target The firm says that after a “choppy year” for the software sector followed by a strong three months, there is opportunity to generate alpha by continuing to own “clear market winners” as well as companies with re-rate potential on the benefits or artificial intelligence. Stock picking “has become more crucial than ever” with the bulk of investor interest being in semiconductors to questions on why certain software businesses should still exist beyond five years, the analyst tells investors in a research note.