On Thursday, BMO Capital Markets increased its price target on shares of ServiceNow (NYSE:NOW), a leading digital workflow company, to $1,025.00, up from the previous $860.00. The firm has retained its Outperform rating on the stock. The adjustment reflects BMO's heightened confidence in the company's sustained growth potential.
The analyst from BMO Capital Markets expressed optimism about ServiceNow's growth trajectory, citing positive feedback from the Value-Added Reseller (VAR) community regarding the company's product offerings. The analyst noted that the robust pipeline and potential for increased product mix could support growth into the calendar year 2025.
ServiceNow's financial outlook also appears promising, with expectations of continued revenue growth. The analyst mentioned that there is a possibility for ServiceNow to exceed the previously guided 22% year-over-year constant currency committed recurring revenue (CC CRPO) growth, indicating a strong performance for the upcoming period.
The firm's decision to maintain the Outperform rating alongside the price target increase suggests a favorable view of ServiceNow's market position and its ability to outperform its peers or the broader market. This perspective is based on the company's current strategies and market dynamics.
In summary, BMO Capital Markets has raised its stock price target for ServiceNow to $1,025 from $860 while maintaining an Outperform rating, based on the company's growth prospects and positive market indicators. The firm expects ServiceNow to potentially surpass its previous revenue growth guidance, highlighting the company's strong performance and potential for future growth.
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