ServiceNow stock target raised to $1,100 by RBC Capital

Published 06/05/2025, 15:40
ServiceNow stock target raised to $1,100 by RBC Capital

On Tuesday, ServiceNow (NYSE:NOW) saw its price target increased by RBC Capital Markets from $1,060.00 to $1,100.00, while the firm retained an Outperform rating on the stock. The revision came after RBC Capital’s Matthew Hedberg expressed a more positive outlook following ServiceNow’s Financial Analyst Day 2025. With a current market capitalization of $201.75 billion and analyst targets ranging from $724 to $1,300, ServiceNow maintains a strong "Buy" consensus among analysts. According to InvestingPro data, the stock is currently trading near its Fair Value.

Hedberg highlighted ServiceNow’s unique position in the market, especially in the area of agentic artificial intelligence (AI). According to Hedberg, ServiceNow is one of the rare software entities that has successfully monetized Generation AI (GenAI) technologies. He anticipates that the company’s hybrid pricing model will further enhance monetization prospects in the long term. The company’s impressive 79% gross profit margin and 21% year-over-year revenue growth demonstrate its operational efficiency. InvestingPro analysis reveals 15+ additional insights about ServiceNow’s financial health and market position.

ServiceNow’s consistent performance in terms of execution and product innovation was also praised by the RBC Capital analyst. He noted that these strengths help to distinguish the company in the competitive software industry. Based on these factors, Hedberg reaffirmed the Outperform rating for ServiceNow shares.

The revised price target reflects a positive view of ServiceNow’s potential for growth and is partly based on the expansion of peer multiples. Hedberg’s comments suggest that ServiceNow’s strategic position and business model are well-aligned with the evolving demands of the AI technology market.

Investors and market watchers will likely keep a close eye on ServiceNow’s stock performance following this updated price target and the optimistic assessment from RBC Capital Markets.

In other recent news, ServiceNow has been the subject of numerous analyst evaluations following its Financial Analyst Day and related events. BMO Capital Markets maintained an Outperform rating on ServiceNow, with a price target of $1,025, emphasizing the company’s strategic push to expand its artificial intelligence capabilities. JMP Securities echoed this sentiment, reaffirming a Market Outperform rating and setting a higher price target of $1,300, citing ServiceNow’s strong market presence and strategic initiatives under CEO Bill McDermott. Oppenheimer also raised its price target to $1,100 from $970, maintaining an Outperform rating due to ServiceNow’s ambitious goals for its AI segment and projected improvements in free cash flow margins.

Needham analysts kept a Buy rating and a $1,050 price target, highlighting ServiceNow’s resilience amidst foreign exchange challenges and its focus on AI integration. Truist Securities also maintained a Buy rating with a $1,200 price target, impressed by ServiceNow’s leadership in AI product adoption and its potential to enhance profitability. The company’s commitment to AI and strategic growth initiatives has garnered positive attention from analysts, who continue to view ServiceNow as a strong investment opportunity. These developments reflect a broad confidence in ServiceNow’s ability to navigate current market conditions and sustain its growth trajectory.

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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