Breaking Down ServiceNow: 30 Analysts Share Their Views

Throughout the last three months, 30 analysts have evaluated ServiceNow NOW, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have recently evaluated ServiceNow and provided 12-month price targets. The average target is $1103.13, accompanied by a high estimate of $1432.00 and a low estimate of $716.00. Experiencing a 6.21% decline, the current average is now lower than the previous average price target of $1176.21.

Breaking Down Analyst Ratings: A Detailed Examination

In examining recent analyst actions, we gain insights into how financial experts perceive ServiceNow. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|------------------------|---------------|-----------------|--------------------|--------------------| |Raimo Lenschow |Barclays |Lowers |Overweight | $967.00|$1200.00 | |Keith Weiss |Morgan Stanley |Lowers |Equal-Weight | $881.00|$960.00 | |Thomas Blakey |Cantor Fitzgerald |Maintains |Overweight | $1048.00|$1048.00 | |John Difucci |Guggenheim |Maintains |Sell | $716.00|$716.00 | |Brad Sills |B of A Securities |Lowers |Buy | $1025.00|$1280.00 | |Samad Samana |Jefferies |Lowers |Buy | $1025.00|$1250.00 | |Michael Turrin |Wells Fargo |Lowers |Overweight | $1100.00|$1250.00 | |Kash Rangan |Goldman Sachs |Lowers |Buy | $1050.00|$1200.00 | |Robert Majek |Raymond James |Lowers |Outperform | $1000.00|$1200.00 | |Keith Bachman |BMO Capital |Lowers |Outperform | $990.00|$1185.00 | |Brad Reback |Stifel |Lowers |Buy | $950.00|$1175.00 | |Joel Fishbein |Truist Securities |Lowers |Hold | $950.00|$1100.00 | |Rob Oliver |Baird |Lowers |Outperform | $1010.00|$1200.00 | |Gregg Moskowitz |Mizuho |Lowers |Outperform | $1100.00|$1210.00 | |Thomas Blakey |Cantor Fitzgerald |Maintains |Overweight | $1048.00|$1048.00 | |Karl Keirstead |UBS |Lowers |Buy | $1000.00|$1250.00 | |Patrick Walravens |Citizens Capital Markets|Maintains |Market Outperform| $1300.00|$1300.00 | |David Hynes |Canaccord Genuity |Maintains |Buy | $1275.00|$1275.00 | |Tyler Radke |Citigroup |Lowers |Buy | $1426.00|$1432.00 | |Samad Samana |Jefferies |Lowers |Buy | $1250.00|$1300.00 | |David Hynes |Canaccord Genuity |Raises |Buy | $1275.00|$1200.00 | |Brian Schwartz |Oppenheimer |Raises |Outperform | $1200.00|$1150.00 | |Matthew Hedberg |RBC Capital |Maintains |Outperform | $1210.00|$1210.00 | |Rob Oliver |Baird |Lowers |Outperform | $1200.00|$1250.00 | |Mark Murphy |JP Morgan |Lowers |Overweight | $1200.00|$1250.00 | |Patrick Walravens |JMP Securities |Maintains |Market Outperform| $1300.00|$1300.00 | |Mike Cikos |Needham |Raises |Buy | $1200.00|$1150.00 | |Mark Murphy |JP Morgan |Raises |Overweight | $1250.00|$950.00 | |Tyler Radke |Citigroup |Raises |Buy | $1432.00|$1071.00 | |John Difucci |Guggenheim |Announces |Sell | $716.00|- |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to ServiceNow. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of ServiceNow compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for ServiceNow's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of ServiceNow's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on ServiceNow analyst ratings.

Discovering ServiceNow: A Closer Look

ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management, expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service.

Financial Insights: ServiceNow

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Over the 3M period, ServiceNow showcased positive performance, achieving a revenue growth rate of 21.34% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.99%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): ServiceNow's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.06%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): ServiceNow's ROA excels beyond industry benchmarks, reaching 1.98%. This signifies efficient management of assets and strong financial health.

Debt Management: ServiceNow's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.24.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.