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Investing.com - Cantor Fitzgerald has reiterated an Overweight rating on ServiceNow (NYSE:NOW) with a price target of $1,200.00 ahead of the company’s upcoming earnings report. The target represents a significant premium to the current price of $963.40, with InvestingPro data showing the stock has already delivered a robust 28% return over the past year.
ServiceNow is scheduled to release its second-quarter financial results on Wednesday, July 23, after market close. The company enters this report with impressive fundamentals, including a 79% gross profit margin and 21% revenue growth over the last twelve months. Cantor Fitzgerald indicated it had previewed the shares positively earlier this week based on favorable checks.
The firm noted a possible increase in short-selling activity on ServiceNow shares following recent outperformance, but suggested this activity might be more tactical in nature rather than reflecting fundamental concerns.
Cantor Fitzgerald expects the upcoming earnings report to serve as a positive catalyst for ServiceNow shares, citing mitigated risks in the federal sector where checks indicate stable demand.
The firm also highlighted that ServiceNow’s "Now Assist starter packs" could potentially drive more Pro Plus upgrades and adoption, contributing to positive momentum for the company. With analysts forecasting 19% revenue growth for fiscal year 2025, the company appears well-positioned to maintain its growth trajectory.
In other recent news, ServiceNow has been under the spotlight for several key developments. The company is currently facing an in-depth antitrust review by the U.S. Justice Department regarding its planned $2.85 billion acquisition of Moveworks Inc., an artificial intelligence company. This review could potentially delay the regulatory approval process, with both companies required to respond to further information requests. Meanwhile, ServiceNow’s earnings outlook has garnered attention from analysts. Goldman Sachs has reiterated a Buy rating and a $1,150 price target, expecting the company to meet its guidance for second-quarter subscription revenue growth. BofA Securities also raised its price target to $1,100, citing ServiceNow’s leadership in AI and workflow automation. Additionally, Cantor Fitzgerald increased its price target to $1,200, highlighting accelerating business trends and positive Federal segment expectations. On another front, ServiceNow has partnered with Ferrari (BIT:RACE) to enhance the automaker’s Hypercar team operations, utilizing its AI platform for real-time race operations and enterprise-wide management.
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