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

Investing.com - Citizens JMP analyst reiterated a Market Outperform rating and $1,300 price target on ServiceNow (NYSE:NOW) ahead of the company’s second-quarter earnings report. According to InvestingPro data, the company maintains impressive gross profit margins of 79% and has demonstrated strong revenue growth of 21% over the last twelve months.

The software company is scheduled to release its 2Q25 financial results on Wednesday after market close, according to the research note issued Tuesday.

The firm’s recommendation follows due diligence that yielded 13 data points, with 11 positive and 2 negative findings, supporting the maintained outlook on the cloud computing platform provider.

Citizens JMP noted that ServiceNow stock has fallen 9% year to date, underperforming compared to broader market indices.

This performance contrasts with the S&P 500’s 7% increase and the Russell 3000’s 8% gain during the same period.

In other recent news, ServiceNow is set to release its second-quarter financial results soon, with analysts closely watching the upcoming report. Cantor Fitzgerald has maintained an Overweight rating on ServiceNow, setting a price target of $1,200 and highlighting potential positive catalysts from the company’s federal sector performance. BofA Securities has also raised its price target to $1,100, citing ServiceNow’s strong position in the IT and custom applications market and its potential in the artificial intelligence sector. However, ServiceNow’s $2.85 billion acquisition of Moveworks is currently under an antitrust review by the U.S. Justice Department, which could delay the deal’s completion.

Goldman Sachs reiterated its Buy rating on ServiceNow with a price target of $1,150, expressing confidence in the company’s growth prospects despite some investor concerns. The firm anticipates steady subscription revenue growth in the upcoming quarter. Cantor Fitzgerald also increased its price target from $1,048 to $1,200, attributing this to accelerating business trends and de-risked management assumptions in the federal business segment. Both analysts and investors are keenly observing ServiceNow’s developments in artificial intelligence initiatives and their potential impact on future revenue.

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