ServiceNow stock price target maintained at $1,300 by Citizens

Investing.com - Citizens maintained its Market Outperform rating and $1,300 price target on ServiceNow (NYSE:NOW) ahead of the company’s third-quarter earnings report scheduled for Wednesday, October 29. According to InvestingPro data, the stock is currently trading near its Fair Value, with analyst targets ranging from $734 to $1,300.

The research firm’s decision follows extensive channel checks and due diligence that yielded 15 data points, with 13 positive and two negative findings about the software company.

Among the positive indicators, Citizens highlighted ServiceNow’s recent contract with the Department of Veterans Affairs, valued at $124.1 million, which represents the second-largest federal award in the company’s history.

The significant government contract was awarded on August 20, providing a potential boost to ServiceNow’s business performance in the current quarter.

The maintained rating comes as ServiceNow stock has decreased 11% year-to-date, underperforming compared to the Russell 3000 index, which has increased 13% during the same period.

In other recent news, NowVertical Group Inc. announced that a UK-based Strategic Account has generated over $1 million in contracted revenue within six months. This achievement marks the fastest scale-up for any account in NowVertical’s Strategic Account Program. The UK client, a global leader in financial and market intelligence, is working with NowVertical on a data modernization program. Meanwhile, ServiceNow has been the focus of several analyst updates. UBS lowered its price target for ServiceNow to $1,075, while maintaining a Buy rating, citing mixed feedback on the company’s AI initiatives. Oppenheimer reiterated its Outperform rating with a $1,150 price target, following insights from a large ServiceNow partner. Stifel also maintained a Buy rating with a $1,200 price target, noting an improved selling environment. Additionally, ServiceNow introduced AI Experience, a new interface designed to integrate artificial intelligence across enterprise workflows.

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