ServiceNow (NYSE:NOW)‘s stock had its “buy” rating reaffirmed by investment analysts at Credit Suisse Group in a research note issued to investors on Sunday. They presently have a $165.00 target price on the information technology services provider’s stock. Credit Suisse Group’s price objective indicates a potential upside of 13.67% from the company’s current price.
The analysts wrote, “We believe NOW is poised to execute against a massive digital transformation opportunity, with the majority of its $62bn TAM from newer, less penetrated markets. Our analysis suggests that even if NOW penetrates its Emerging Solutions markets less than half as quickly as it penetrated the ITSM market, the company can exceed its $4bn revenue target by 2020. We believe net-new ACV mix shifting towards Emerging Solutions increases the likelihood of achieving sufficient penetration beyond core ITSM. This is further evidenced by a building presence of emerging products within the top 20 deals in a quarter. As the figure below depicts, ITBM, GRC, and Analytics had the strongest y/y growth in presence among the largest deals booked. A lower-sloped trend indicates stronger momentum for a respective product. See our recent earnings note, NOW: 4Q17 – NOW More Than Ever.””
Other analysts also recently issued research reports about the stock. Barclays increased their price objective on shares of ServiceNow from $150.00 to $158.00 and gave the company an “overweight” rating in a research report on Thursday, February 1st. KeyCorp reaffirmed an “overweight” rating and issued a $150.00 price objective (up previously from $125.00) on shares of ServiceNow in a research report on Thursday, October 26th. Argus reaffirmed a “buy” rating and issued a $150.00 price objective (up previously from $125.00) on shares of ServiceNow in a research report on Friday, October 27th. Stifel Nicolaus increased their price objective on shares of ServiceNow from $110.00 to $120.00 and gave the company a “hold” rating in a research report on Thursday, October 26th. Finally, Mizuho reaffirmed a “buy” rating and issued a $140.00 price objective on shares of ServiceNow in a research report on Wednesday, October 25th. One investment analyst has rated the stock with a sell rating, six have given a hold rating, twenty-eight have given a buy rating and two have issued a strong buy rating to the company. ServiceNow has a consensus rating of “Buy” and a consensus price target of $148.28.
ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, January 31st. The information technology services provider reported $0.35 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.35. ServiceNow had a negative net margin of 7.71% and a negative return on equity of 24.97%. The company had revenue of $546.37 million during the quarter, compared to the consensus estimate of $532.74 million. During the same quarter last year, the company earned $0.25 earnings per share. ServiceNow’s revenue for the quarter was up 41.7% on a year-over-year basis. equities research analysts forecast that ServiceNow will post 0.1 EPS for the current fiscal year.
In related news, Director Frederic B. Luddy sold 48,790 shares of the firm’s stock in a transaction on Tuesday, November 14th. The stock was sold at an average price of $124.37, for a total transaction of $6,068,012.30. Following the transaction, the director now directly owns 400 shares in the company, valued at $49,748. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CRO David Schneider sold 16,349 shares of the firm’s stock in a transaction on Monday, November 13th. The stock was sold at an average price of $124.21, for a total value of $2,030,709.29. Following the transaction, the executive now owns 67,185 shares in the company, valued at $8,345,048.85. The disclosure for this sale can be found here. Insiders have sold 581,810 shares of company stock worth $76,802,884 over the last 90 days. 3.30% of the stock is currently owned by company insiders.
A number of hedge funds have recently bought and sold shares of NOW. Ark Investment Management LLC lifted its stake in ServiceNow by 113.3% in the second quarter. Ark Investment Management LLC now owns 7,713 shares of the information technology services provider’s stock valued at $818,000 after buying an additional 4,097 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in ServiceNow by 3.1% in the second quarter. Dimensional Fund Advisors LP now owns 158,144 shares of the information technology services provider’s stock valued at $16,764,000 after buying an additional 4,803 shares during the last quarter. AHL Partners LLP bought a new stake in ServiceNow in the second quarter valued at $287,000. Castleark Management LLC bought a new stake in ServiceNow in the second quarter valued at $446,000. Finally, WINTON GROUP Ltd bought a new stake in ServiceNow in the second quarter valued at $262,000.
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ServiceNow Company Profile
ServiceNow, Inc is provider of enterprise cloud computing solutions that define, structure, manage and automate services for global enterprises. The Company offers a set of cloud-based services that automate workflow within and between departments in an enterprise. It provides workflow solutions, and focuses on service management for customer support, human resources, security operations and other enterprise departments.
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