UPDATE: UBS Starts ServiceNow (NOW) at Neutral; Valuation Appears Priced Into Future Potential Success

(Updated - July 24, 2012 1:10 PM EDT)

UBS initiates coverage on ServiceNow (NYSE: NOW) with a Neutral. PT $26.00.

Analyst, Brent Thill, said, "We view NOW as the salesforce.com of the back-office, a SaaS disruptor of the $14.8B IT operations management (ITOM) market. NOW has doubled its revenue annually (166% five-year CAGR) building a cash flow positive business serving over 1000 enterprises. NOW has focused its efforts in the IT operations market, but its cloud platform has broader applicability to automate any enterprise workflow. Our biggest concern is valuation at 9.2x FY13E EV/sales, with upside in NOW’s multiple likely muted with investors pricing in early NOW’s potential success."

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 $24.35 yesterday.

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