EU and US could reach trade deal this weekend - Reuters
Investing.com - DA Davidson raised its price target on ServiceNow (NYSE:NOW) to $1,250.00 from $1,150.00 on Thursday, while maintaining a Buy rating on the software company’s shares. The new target represents significant upside potential for the $206.73 billion market cap company, which currently trades at a P/E ratio of 120.33.
The price target increase follows ServiceNow’s latest quarterly earnings report, which exceeded analyst expectations. The company also raised its forward guidance, demonstrating continued momentum in its business performance, supported by impressive revenue growth of 21.12% and industry-leading gross margins of 78.52%. InvestingPro analysis shows the company maintains a GOOD financial health score, with 15+ additional insights available to subscribers.
DA Davidson highlighted ServiceNow’s progress with Now Assist and its customer relationship management (CRM) offerings as key drivers behind the improved outlook. The firm noted that ServiceNow remains confident in meeting its 2026 subscription revenue targets and Now Assist annual contract value goals.
The research firm specifically identified ServiceNow as a "market leading AI innovator" in its analysis, suggesting the company is well-positioned in the artificial intelligence space. DA Davidson also characterized ServiceNow as a "share gainer" in the CRM market.
The price target adjustment represents an increase of approximately 8.7% from the previous target of $1,150.00 set by DA Davidson.
In other recent news, ServiceNow has been the focus of several significant developments. Google (NASDAQ:GOOGL) has secured a $1.2 billion cloud-computing deal with ServiceNow over five years, marking a substantial achievement for Google Cloud. On the financial front, ServiceNow’s second-quarter performance was noted for its strong current remaining performance obligations growth of 21.5% on a constant currency basis, surpassing expectations by approximately 200 basis points, according to TD Cowen. This has led TD Cowen to raise its price target for ServiceNow to $1,200 from $1,150, maintaining a Buy rating. Similarly, RBC Capital also increased its price target to $1,200 from $1,100, citing the company’s impressive quarterly performance despite macroeconomic challenges. BMO Capital adjusted its price target to $1,160 from $1,150, while maintaining an Outperform rating, although they noted that sales trends were modestly below expectations. Meanwhile, NowVertical Group Inc. announced its participation in the Qlik AI Reality Tour event in Brazil, following its recognition as Qlik’s 2024 Latin America Channel Growth Partner of the Year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.