ServiceNow (NYSE:NOW) Price Target Raised to $150.00

Key Points

• Bank of America raised ServiceNow’s price target to $150 from $130 and maintained a “buy” rating, implying approximately 17.39% upside from the reported share price.
• Analyst sentiment remains broadly positive: ServiceNow has a “Moderate Buy” consensus rating and an average price target of $144.24, supported by 36 Buy ratings and one Strong Buy rating.
• ServiceNow exceeded quarterly expectations, reporting $0.90 in EPS versus $0.86 expected and $3.99 billion in revenue, up 24% year over year.

ServiceNow (NYSE:NOW - Get Free Report) had its target price increased by research analysts at Bank of America from $130.00 to $150.00 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the information technology services provider's stock. Bank of America's price objective points to a potential upside of 17.39% from the company's current price.

Several other research firms have also recently issued reports on NOW. Evercore reaffirmed an "outperform" rating and issued a $160.00 price target on shares of ServiceNow in a report on Thursday, July 23rd. BTIG Research reaffirmed a "buy" rating and set a $150.00 target price on shares of ServiceNow in a research report on Wednesday, July 22nd. Citizens Jmp reaffirmed a "market outperform" rating and set a $157.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. TD Cowen reiterated a "buy" rating and issued a $140.00 price target on shares of ServiceNow in a research report on Monday. Finally, Guggenheim raised ServiceNow from a "neutral" rating to a "buy" rating and set a $125.00 price target on the stock in a research note on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $144.24.

ServiceNow Price Performance

NYSE NOW traded up $8.29 on Wednesday, reaching $127.78. The company's stock had a trading volume of 12,577,502 shares, compared to its average volume of 23,679,934. ServiceNow has a twelve month low of $81.24 and a twelve month high of $194.73. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The firm's 50 day moving average is $107.40 and its two-hundred day moving average is $105.41. The stock has a market cap of $132.12 billion, a PE ratio of 80.17, a PEG ratio of 2.18 and a beta of 0.94.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion for the quarter, compared to analysts' expectations of $3.93 billion. During the same quarter in the previous year, the company posted $0.81 EPS. The business's revenue was up 24.0% compared to the same quarter last year. As a group, sell-side analysts predict that ServiceNow will post 2.24 EPS for the current year.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $125.60, for a total value of $188,400.00. Following the completion of the sale, the director owned 46,690 shares of the company's stock, valued at $5,864,264. This trade represents a 3.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On ServiceNow

Several hedge funds have recently bought and sold shares of the business. Field & Main Bank acquired a new stake in ServiceNow during the 2nd quarter worth about $757,000. Lombard Odier Asset Management Europe Ltd acquired a new position in shares of ServiceNow in the 2nd quarter valued at about $17,906,000. Archer Investment Corp purchased a new stake in shares of ServiceNow in the second quarter worth approximately $223,000. Fox Hill Wealth Management acquired a new stake in shares of ServiceNow during the second quarter worth approximately $220,000. Finally, Beacon Pointe Advisors LLC acquired a new stake in shares of ServiceNow during the second quarter worth approximately $24,231,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Cybersecurity acquisition could strengthen ServiceNow’s growth strategy. Coverage of the planned approximately $7.75 billion acquisition of Armis highlights the deal’s potential to expand ServiceNow’s AI-enabled security platform and add preventive cyber-defense capabilities to its enterprise workflow offerings. The transaction is intended to provide a stronger position in the growing cybersecurity market. Inside the $8 billion cybersecurity acquisition
• Positive Sentiment: Analyst and media support is helping sentiment recover. TD Cowen reiterated its Buy rating, while Jim Cramer argued that investors are treating profitable software companies as if their business models face extinction. A separate analysis said NOW may be forming a technical bottom and set an 18-month target of $156, citing an estimated 24.5% three-to-five-year earnings growth rate. TD Cowen reiterates Buy rating ServiceNow may be bottoming
• Positive Sentiment: New AI partnership supports platform adoption. Tribal launched Tribal for ServiceNow, allowing enterprise teams to build and personalize AI agents within the ServiceNow AI Platform. The partnership could increase usage of ServiceNow’s platform beyond traditional developer teams. Tribal partners with ServiceNow
• Neutral Sentiment: Investor positioning remains divided. Some institutional investors increased their NOW holdings while others reduced exposure, reflecting disagreement over the stock’s valuation and the sustainability of software growth.
• Negative Sentiment: AI-related business-model concerns remain. An investor cautioned that AI agents could enable companies to accomplish more work with fewer employees, potentially pressuring software vendors’ traditional per-seat pricing model. AI business-model warning
• Negative Sentiment: Valuation and insider selling could limit the rebound. Commentary says NOW still appears expensive despite its large decline over the past year. Separately, Director Paul Edward Chamberlain sold 1,500 shares under a pre-arranged Rule 10b5-1 plan, a modest transaction but one that may add to short-term caution. ServiceNow valuation analysis

ServiceNow Company Profile

ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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