ServiceNow (NOW) Seen as True Cloud Platform Play - UBS; PT Up to $97

UBS reiterated a Buy rating on ServiceNow (NYSE: NOW), and raised the price target to $97.00 (from $84.00), as shares continue to outperform. NOW is up +7% over the past month and +27% YTD. Feedback from UBS's checks were overwhelmingly positive around the company's competitive differentiation, breadth and depth of solutions, and strength of cloud technology platform.

Analyst Brent Thill commented, "NOW shares have continued to outperform, +7% over the past month and +27% YTD (vs. NASDAQ +9%). In our view, NOW is one of the most well-positioned stories in software, and we expect shares continue to benefit from investor appetite for the best pure-play cloud stories heading into 2016. Given current expectations for ~55% CC y/y revenue growth in F15, and limited NT competition, we are comfortable NOW can continue to deliver premium revenue growth and raise our estimates for F16/17 to +40%/+34% y/y growth. We examine the story in greater detail inside."

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 $86.47 yesterday.

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