Goldman Sachs Starts ServiceNow (NOW) at Buy

Goldman Sachs initiated coverage on ServiceNow (NYSE: NOW) with a Buy rating and a price target of $80.00.

Analyst Greg Dunham said, "We initiate coverage with a Buy rating and a 12-month $80 price target as we see 26% upside to shares as investors get increased visibility to NOW’s growth and leverage profile in 2015. We model FCF margins to expand 400-450 bps each year from 2013 to 2016 while revenue growth remains above 35%. Best-in-class sales productivity is supported by low churn and customer expansion tailwinds as IT professionals leverage ServiceNow beyond traditional IT Service operations (i.e., Incident mgmt., asset mgmt., change and configuration mgmt., etc.) to custom app development and internal service applications."

For an analyst ratings summary and ratings history on ServiceNow click here. For more ratings news on ServiceNow click here.

Shares of ServiceNow closed at $63.44 yesterday.

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