ServiceNow stock rating reiterated at Buy by DA Davidson

Investing.com - DA Davidson has reiterated its Buy rating on ServiceNow (NYSE:NOW) with a price target of $1,250.00, representing a potential 32% upside from the current price of $947.97. This aligns with the broader analyst consensus of "Strong Buy" and sits below the highest analyst target of $1,300.

The research firm noted that ServiceNow delivered another quarter that beat expectations and raised guidance, building further momentum with its Now Assist and CRM products. The company continues to demonstrate impressive gross profit margins of 78.5% and strong revenue growth of 21.1% over the last twelve months.

According to DA Davidson, ServiceNow’s growth outlook has improved, and the company is confident it will surpass its 2026 Now Assist Annual Contract Value (ACV) target of $1 billion.

The firm highlighted ServiceNow as a market leading AI innovator that is gaining market share in the Customer Relationship Management (CRM) sector.

DA Davidson analyst Gil Luria maintained the positive outlook on the company, keeping the $1,250.00 price target unchanged.

In other recent news, ServiceNow has been the focus of several analyst updates following its latest quarterly earnings report. The company demonstrated strong subscription revenue growth and exceeded its operating margin guidance, as noted by BMO Capital, which adjusted its price target slightly lower to $1,150 while maintaining an Outperform rating. In contrast, TD Cowen raised its price target to $1,250, citing significant growth in ServiceNow’s current remaining performance obligation (cRPO), marking the largest beat in over two years.

RBC Capital reiterated its Outperform rating with a $1,200 price target, emphasizing the company’s robust performance and demand in the U.S. Federal business segment. Piper Sandler also maintained an Overweight rating, highlighting 30% growth in Federal Net New Annual Contract Value and projecting $500 million in Now Assist Annual Contract Value by year-end. Wells Fargo increased its price target to $1,275, reflecting higher estimates due to ServiceNow’s updated guidance for 2025 and its implications for future years.

These developments indicate a positive outlook from analysts, with a focus on ServiceNow’s performance and strategic growth areas, particularly in AI and federal demand.

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