ServiceNow initiated with an Outperform at Raymond James

Raymond James initiated coverage of ServiceNow (NOW) with an Outperform rating and $1,200 price target The firm, which believes ServiceNow’s unique growth at scale drives “a popular concern regarding durability,” attempts to balance its positive long-term view on the business with an acknowledgement that near-term valuation is “challenging,” the analyst tells investors. However, the firm sees the relative valuation multiple holding as total company growth in the 20% range “should power the stock to outperform if this holds true,” the analyst added.