ServiceNows Robust Performance and Growth Potential Reinforce Buy Rating: A Comprehensive Analysi

Bank of America Securities analyst Bradley Sills reiterated a Buy rating on ServiceNow (NOW – Research Report) yesterday and set a price target of $660.00.

Bradley Sills provided his Buy rating for ServiceNow’s stock based on an array of factors. Among these were the company’s impressive growth in a challenging macroeconomic environment, as well as its strong execution across numerous sectors and end markets. ServiceNow’s better-than-expected subscription revenue and cRPO/bookings for Q3, driven by strength in the Federal vertical, early renewals, and widespread strength across suites and geographies, was a key factor in this positive rating. Furthermore, the company’s Q4 outlook for cRPO growth is in line with Sills’ expectations, indicating the company is on track for solid mid-20s growth through Q4.

Sills was also favorably impressed by the positive impact of ServiceNow’s diverse workflow automation use cases and its large market opportunity. He noted the company’s emerging business lines such as employee workflow, technology security and risk, and the breadth of geographies including EMEA and Asia as contributing to its strong performance. Sills also pointed out the early traction with AI in visible public sector as a promising sign. Lastly, he expects ServiceNow to sustain a solid rule of 50+ due to its ability to deliver mid-20s growth at its current scale, with margin leverage. In view of these factors, Sills reiterated his Buy rating for ServiceNow, with a price target of $660.

NOW’s price has also changed moderately for the past six months – from $442.280 to $530.170, which is a 19.87% increase.

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ServiceNow (NOW) Company Description:

Founded in 2004 and based in California, ServiceNow, Inc. is a software company which provides enterprise cloud computing solutions to help companies manage digital workflows for enterprise operations. The company offers its solutions to various sectors including healthcare, education, oil and gas, telecommunications, government, consumer products, technology, IT and financial services.

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