ServiceNow stock price target maintained at $1,300 by JMP, citing AI products

Published 04/08/2025, 19:36
ServiceNow stock price target maintained at $1,300 by JMP, citing AI products

Investing.com - JMP Securities has reiterated its Market Outperform rating and $1,300 price target on ServiceNow (NYSE:NOW) following a meeting with the company’s investor relations team at its Santa Clara headquarters on Thursday. The target represents a 41% upside from the current price of $922.09, with InvestingPro data showing the company maintains impressive gross profit margins of 78.5% and generates strong cash flows.

The firm’s analyst Patrick Walravens maintained the rating after observing demonstrations of ServiceNow’s AI Control Tower product and AI Agents in AI Agent Studio during the visit.

The investor relations meeting included Vice President Darren Yip, Senior Manager Andrew Libert, and team members Christine Bancroft and Alexander Yuan.

JMP’s decision comes as ServiceNow stock has decreased 14% year to date, underperforming compared to the Russell 3000 index which has increased 6% during the same period.

The maintained price target suggests significant upside potential for the enterprise software company despite its recent stock performance challenges.

In other recent news, ServiceNow reported strong second-quarter 2025 results, surpassing analyst expectations and raising its guidance for the third quarter and full year. Despite slightly lower-than-expected fourth-quarter subscription revenue guidance, Cantor Fitzgerald maintained an Overweight rating with a $1,200 price target. DA Davidson also raised its price target for ServiceNow to $1,250, citing the company’s continued momentum driven by its latest earnings report. BMO Capital adjusted its price target to $1,160, noting modestly below-expected sales trends but maintaining an Outperform rating. Additionally, ServiceNow is in advanced discussions with Salesforce (NYSE:CRM) to invest $750 million each in Genesys Cloud Services, a deal that would value Genesys at approximately $15 billion. JMP Securities reiterated its Market Outperform rating and maintained a $1,300 price target after a visit to ServiceNow’s headquarters. These developments highlight ServiceNow’s strong performance and strategic investments.

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

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