In the last three months, 21 analysts have published ratings on ServiceNow NOW, offering a diverse range of perspectives from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 11 | 8 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 8 | 7 | 1 | 0 | 0 |
| 3M Ago | 1 | 1 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $840.76, along with a high estimate of $910.00 and a low estimate of $700.00. This current average has increased by 12.5% from the previous average price target of $747.33.
Understanding Analyst Ratings: A Comprehensive Breakdown
The analysis of recent analyst actions sheds light on the perception of ServiceNow by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Brad Reback | Stifel | Maintains | Buy | $820.00 | - |
| Brad Reback | Stifel | Maintains | Buy | $820.00 | - |
| Tyler Radke | Citigroup | Raises | Buy | $896.00 | $862.00 |
| Kash Rangan | Goldman Sachs | Raises | Buy | $910.00 | $800.00 |
| Karl Keirstead | UBS | Raises | Buy | $885.00 | $865.00 |
| Rob Oliver | Baird | Raises | Outperform | $870.00 | $780.00 |
| Gregg Moskowitz | Mizuho | Raises | Buy | $820.00 | $750.00 |
| Matthew Hedberg | RBC Capital | Raises | Outperform | $850.00 | $840.00 |
| Ki Bin Kim | Truist Securities | Raises | Hold | $750.00 | $700.00 |
| Brad Reback | Stifel | Raises | Buy | $820.00 | $740.00 |
| Keith Bachman | BMO Capital | Raises | Outperform | $850.00 | $630.00 |
| Kash Rangan | Goldman Sachs | Raises | Buy | $910.00 | $800.00 |
| Rob Owens | Piper Sandler | Raises | Overweight | $830.00 | $750.00 |
| Raimo Lenschow | Barclays | Raises | Overweight | $890.00 | $870.00 |
| Mike Cikos | Needham | Maintains | Buy | $900.00 | - |
| Raimo Lenschow | Barclays | Raises | Overweight | $870.00 | $765.00 |
| Patrick Walravens | JMP Securities | Raises | Market Outperform | $825.00 | $665.00 |
| Mike Cikos | Needham | Raises | Buy | $900.00 | $660.00 |
| Brian Schwartz | Oppenheimer | Raises | Outperform | $800.00 | $750.00 |
| Ki Bin Kim | Truist Securities | Raises | Hold | $700.00 | $575.00 |
| Brad Reback | Stifel | Raises | Buy | $740.00 | $650.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to ServiceNow. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of ServiceNow compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of ServiceNow's stock. This examination reveals shifts in analysts' expectations over time.
Capture valuable insights into ServiceNow's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on ServiceNow analyst ratings.
Unveiling the Story Behind ServiceNow
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.
ServiceNow's Financial Performance
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: ServiceNow's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 25.62%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.11%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): ServiceNow's ROE excels beyond industry benchmarks, reaching 3.98%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): ServiceNow's ROA excels beyond industry benchmarks, reaching 1.82%. This signifies efficient management of assets and strong financial health.
Debt Management: ServiceNow's debt-to-equity ratio is below the industry average at 0.3, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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