Wells Fargo Starts ServiceNow (NOW) at Outperform; Becoming the Salesforce.com (CRM) of IT Services Desk

Wells Fargo initiates coverage on ServiceNow (NYSE: NOW) with an Outperform. PT range $29-$31.

Analyst, Jason Maynard, said, "ServiceNow offers a disruptive cloud application and platform for the IT service desk and operations management market. We believe NOW has a compelling multiyear sustainable runway for 40+% top-line growth and material margin expansion...We are projecting revenue growth in 2013 and 2014 of 51% and 43%, respectively, on billings growth of more than 40% each year. Given its leadership position in SaaS IT Service Management, significant growth opportunities, and the lack of meaningful competition, we believe that a premium multiple is warranted."

"We think ServiceNow is well on its way to becoming the Salesforce.com (NYSE: CRM) of the IT service desk and operations market."
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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