Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - TD Cowen has reiterated its Buy rating and $1,200 price target on ServiceNow (NYSE:NOW), currently valued at $194.5 billion, ahead of the company’s third-quarter earnings report scheduled for October 29. InvestingPro data shows analyst consensus remains strongly bullish, with targets ranging from $734 to $1,300.
The firm’s research indicates strong U.S. federal government bookings execution in the September quarter, which it believes should drive solid current remaining performance obligations (cRPO) outperformance and address investor concerns about government spending that have weighed on the stock. This optimism is supported by ServiceNow’s impressive 21.1% revenue growth and industry-leading 78.5% gross profit margins over the last twelve months.
TD Cowen models cRPO growth of 18% and sees potential for more than 100 basis points of upside compared to the trailing twelve-month average of approximately 100 basis points, noting that enterprise and commercial checks were "constructive" and point to continued strong artificial intelligence adoption.
While acknowledging that the government shutdown could lead to conservative federal assumptions for the fourth quarter, the firm expects the shutdown will end soon and looks for more evidence that ServiceNow’s AI product cycle is gaining increased traction with its enterprise customer base.
ServiceNow shares currently trade at approximately 36 times enterprise value to calendar year 2026 estimated free cash flow, with TD Cowen’s $1,200 price target representing about 47 times that metric. With earnings just 5 days away, gain deeper insights into ServiceNow’s valuation metrics and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, NowVertical Group Inc. reported significant progress with a UK-based strategic account, generating over $1 million in contracted revenue within six months. This achievement marks the fastest scale-up in the company’s Strategic Account Program, as the client, a global leader in financial and market intelligence, implements a data modernization program. Meanwhile, ServiceNow has been the focus of several analyst updates. Citizens maintained a Market Outperform rating and a $1,300 price target, based on positive findings from their research. UBS, however, adjusted its price target for ServiceNow to $1,075 from $1,100, while keeping a Buy rating, citing mixed feedback on AI but noting solid core business performance. Oppenheimer reiterated an Outperform rating with a $1,150 price target, following insights from a key partner about current business conditions. Stifel also maintained a Buy rating and a $1,200 price target, highlighting improvements in ServiceNow’s selling environment and increased strength in its core offerings. These developments provide a snapshot of the current landscape for these companies.
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