JMP reaffirms ServiceNow stock with $1,300 target post-event

On Tuesday, JMP Securities maintained a bullish stance on ServiceNow (NYSE:NOW), reiterating a Market Outperform rating and a $1,300.00 price target. Following attendance at ServiceNow’s Financial Analyst Day and the Knowledge user conference held in Las Vegas, JMP analysts believe the company’s stock continues to present a strong investment opportunity despite its year-to-date performance lagging behind the broader market. With a current market capitalization of $202 billion and impressive gross profit margins of 79%, ServiceNow maintains its position as a prominent player in the software industry.According to InvestingPro analysis, ServiceNow shows strong financial health with 15+ additional insights available to subscribers.

ServiceNow’s stock has seen an 8% decline since the beginning of the year, contrasting with a 4% decrease in the Russell 3000 Index. JMP analysts highlighted ServiceNow’s valuation, noting that it trades at a 2026 estimated enterprise value to revenue (EV/revenue) multiple of 12.6x and a 2026 estimated enterprise value to free cash flow (EV/FCF) multiple of 38x. These figures are set against the backdrop of the company’s market position and strategic value, supported by robust revenue growth of 21% and strong profitability metrics over the last twelve months.

The $1,300 price target set by JMP implies a 2026 estimated EV/revenue multiple of 17x and EV/FCF multiple of 50x. These targets represent significant premiums over the median of ServiceNow’s peer group. JMP’s confidence in the company’s valuation is bolstered by ServiceNow’s market leadership and strategic initiatives under the direction of CEO Bill McDermott and the executive team.

JMP’s analysis suggests that the premium valuation is warranted due to ServiceNow’s strong market presence and the potential for continued strategic growth. The firm’s outlook for ServiceNow remains positive, as indicated by the reaffirmed Market Outperform rating and price target. The company’s recent events in Las Vegas have further solidified JMP’s perspective on ServiceNow’s position within the industry.

In other recent news, ServiceNow has been the focus of several analyst reports following its Financial Analyst Day. Oppenheimer raised its price target for ServiceNow shares to $1,100, maintaining an Outperform rating, citing the company’s robust financial targets and strategic plans in the AI sector. Needham also kept its Buy rating and $1,050 price target, expressing confidence in ServiceNow’s ability to surpass $15 billion in subscription revenue, despite foreign exchange challenges. Truist Securities reiterated a Buy rating with a $1,200 target, impressed by ServiceNow’s leadership in AI product adoption and potential for profitability improvement. Meanwhile, Goldman Sachs maintained a Buy rating with a $1,150 target, highlighting the company’s strategic transition to broader applications beyond IT-centric workflows. These developments underscore ServiceNow’s focus on expanding its AI capabilities and exploring new application areas. The company aims for a $1 billion annual contract value in AI by 2026 and plans to enhance operating and free cash flow margins by 2027. ServiceNow’s strategic initiatives and financial goals continue to draw positive attention from analysts, reinforcing their belief in the company’s growth potential.

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