Piper Jaffray Assumes ServiceNow (NOW) at Overweight

Piper Jaffray assumes coverage on ServiceNow (NYSE: NOW) with a Overweight rating and a price target of $75.00.

Analyst Alex Zukin commented, "We assume coverage of ServiceNow with an Overweight rating and $75 price target vs. prior coverage of Neutral and $55. We see conservative guidance and reduced investor expectations allowing for outperformance over the next year. Fueling future growth in our view will be a combination of further expansion into the Global 2000 and new, interesting products that will continue to drive ASP expansion to long-term targets. In addition, we believe the balance of growth and FCF profitability is unique in our coverage universe with forecasted top-line and billings growth at 35% and 33% for FY16 with FCF margin guidance at 24% and growth of 42%. While we would likely wait for a solid 1Q report before pounding the table we believe the current long term risk reward is favorable."

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 $61.18 yesterday.

You May Also Be Interested In

• TD Cowen Reiterates Buy Rating on ServiceNow (NOW)
• QuantumScape (QS) PT Lowered to $6 at Truist Securities
• JMP Securities Starts The RMR Group Inc. (RMR) at Market Perform, 'Pure-Pay'