Analyst Mike Cikos from Needham maintained a Buy rating on ServiceNow (NOW – Research Report) and decreased the price target to $1,050.00 from $1,200.00.
Mike Cikos has given his Buy rating due to a combination of factors influencing ServiceNow’s recent performance and outlook. The company reported a strong first-quarter performance with a 22% growth in constant currency for cRPO, which exceeded management’s guidance and marked a return to its typical performance pattern. This growth is expected to positively impact the stock, especially considering the current low investor sentiment with shares having declined significantly since the previous quarter’s report.
Additionally, while management has slightly adjusted the revenue outlook for CY25, they have maintained their full-year guidance for key financial metrics such as Subscription Gross Margin, Operating Margin, and Free Cash Flow Margin. Furthermore, there is positive commentary about ServiceNow’s strategic positioning with the U.S. Federal Government, which adds to the confidence in the company’s future prospects despite the uncertain geopolitical environment.
Cikos covers the Technology sector, focusing on stocks such as Dynatrace, Cloudflare, and Cellebrite DI. According to TipRanks, Cikos has an average return of 5.0% and a 44.12% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $969.00 price target.