ServiceNow price target raised to $1,200 from $1,048 at Cantor Fitzgerald

Investing.com - Cantor Fitzgerald raised its price target on ServiceNow (NYSE:NOW) to $1,200 from $1,048 while maintaining an Overweight rating on the stock. The company, currently valued at $198.51 billion, has demonstrated impressive growth with a 21.01% year-over-year revenue increase.

The research firm cited "accelerating business trends" compared to the first quarter, based on partner commentary, as one factor behind the more bullish outlook.

Cantor Fitzgerald also pointed to "de-risked management assumptions" in ServiceNow’s Federal business segment as contributing to its positive view heading into second-quarter earnings.

The price target increase reflects an expansion of Cantor’s valuation multiple from 14x to 16x calendar 2026 revenue, representing a slight premium to the stock’s one-year average multiple.

Increased adoption of Pro Plus and Now Assist Consumption could support potential positive revenue revisions related to artificial intelligence initiatives extending into calendar 2026, according to the research firm.

In other recent news, ServiceNow has reported several noteworthy developments. Moody’s has upgraded ServiceNow’s credit rating to A2, citing strong growth prospects and a robust financial profile, with expected revenue increases to $13 billion by 2025. This upgrade reflects confidence in ServiceNow’s ability to expand its market presence and maintain financial stability. Meanwhile, ServiceNow has formed a strategic partnership with Ferrari (BIT:RACE) to enhance the automaker’s Hypercar team operations, utilizing ServiceNow’s AI platform to streamline communication and performance tracking.

TD Cowen analysts have raised their price target for ServiceNow stock to $1,150, maintaining a Buy rating, following positive insights from a recent conference. RBC Capital also reiterated an Outperform rating for ServiceNow, with a price target of $1,100, highlighting the company’s potential to advance as an "AI agent of agents." Bernstein analysts have maintained an Outperform rating with a $1,003 target, focusing on the potential revenue impact of ServiceNow’s Pro Plus (GenAI) products. They project significant growth in the Pro Plus offering, with expectations of it contributing to ServiceNow’s revenue through 2027.

ServiceNow’s financial flexibility is underscored by $10.9 billion in cash and investments, with free cash flow projected to exceed $4 billion in 2025. The company’s integration of AI technologies into its product offerings is seen as a differentiator in the enterprise software market. These developments reflect a period of strategic growth and innovation for ServiceNow, as the company continues to leverage its strengths in AI and workflow management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.