MKM Partners Reiterates Buy on ServiceNow (NOW) Ahead of 3Q Results

MKM Partners reiterated a Buy rating and $90.00 price target on ServiceNow (NYSE: NOW) after collecting proprietary data points that may suggest that momentum remained strong in 3Q15. The company is scheduled to report its 3Q15 earnings on 10/21/2015.

Analyst Kevin Buttigieg commented, "We are reiterating our Buy rating. We have collected proprietary data points we think suggest momentum remained strong in 3Q15, scheduled to be reported on October 21. First, we spoke with three VARs serving the public sector who each said their ServiceNow business in 3Q15 is up more than 100% Y/Y. ServiceNow is a relatively new offering in the public sector, so the growth rates are off of a lower base, but the momentum and positive commentary we think is encouraging and indicative of the strength of NOW's value proposition. Also, our tracking of NOW's job postings reveals a recovery in hiring plans for total jobs and sales jobs, implying that growth plans remain on track and that the disruptive impacts of the sales force realignment have been resolved. NOW is richly valued, but has strong growth with multiple drivers, a unique market and competitive positioning, and a rare balance between growth and profitability that should become clearer over time."

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 $72.23 yesterday.

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