William Blair analyst Arjun Bhatia has maintained their bullish stance on NOW stock, giving a Buy rating yesterday.
Arjun Bhatia has given his Buy rating due to a combination of factors, including ServiceNow’s strong platform advantage and significant opportunities in the AI space. The company has successfully gained traction with its AI suite, boasting over 1,000 customers using NOW Assist and maintaining a 30% price uplift for its Pro Plus SKU. This indicates a compelling return on investment for customers, even when not all seats are migrated to Pro Plus, with some customers experiencing an even higher price uplift.
Additionally, while the DOGE implications present some challenges, ServiceNow is actively engaging with government stakeholders to demonstrate its platform’s ROI, which could mitigate potential delays in deal closures. Despite these complexities, the company’s core business continues to perform well, with ITSM and other IT workflows driving customer expansion. Furthermore, the demand for front-office workflows is robust, with over 100 deals expected in 2024, surpassing initial expectations. Overall, ServiceNow’s strong execution and ability to leverage AI opportunities position it well for long-term success.
In another report released yesterday, Oppenheimer also reiterated a Buy rating on the stock with a $1,200.00 price target.
Based on the recent corporate insider activity of 162 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.