ServiceNow (NOW) PT Raised to $700 at BofA Securities; reiterated Buy/top pick into EPS

BofA Securities analyst Brad Sills raised the price target on ServiceNow (NYSE: NOW) to $700.00 (from $600.00) while maintaining a Buy rating.

"We believe that ServiceNow is positioned to capture share of three large market opportunities: ITSM, ITOM & custom apps, estimated by Gartner to be $21.3bn, $16.5bn & $64.7bn, respectively. In our upside case, we believe ServiceNow can sustain mid-20s growth through C28 (see upside model inside), arriving at $28.3bn rev, representing 27.6% share of these combined market opportunities. AI offerings such as natural language search and AI orchestrator are slated to launch in September, and likely to represent a catalyst for cRPO/bookings as early as Q4. Reiterate Buy/top pick and raise our PO to $700 from $600 (34x our C24E FCF). Our new $700 PO now based on 31x our C25E FCF of $4.4bn as we roll forward basis to C25 (1.1x adjusted for 30% growth C25) compares to the GARP group trading at 28x (1.3x growth-adjusted on +21% y/y FCF growth)."

You May Also Be Interested In

• BofA Securities Upgrades Moderna (MRNA) to Neutral
• Baidu (BIDU) PT Lowered to $150 at Benchmark on Near-Term Margin Concerns
• Bally's Corp (BALY) PT Lowered to $10; Truist Securities: 'Mixed results amidst a "going concern"'