Goldman Sachs Upgrades ServiceNow (NOW) to Conviction Buy Following Non-Deal Roadshow

June 10, 2021 5:53 AM EDT
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Price: $535.62 +0.98%

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    Up: 15 | Down: 13 | New: 24
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(Updated - June 10, 2021 7:06 AM EDT)

Goldman Sachs analyst Kash Rangan upgraded ServiceNow (NYSE: NOW) from Buy to Conviction Buy with a price target of $695.00.

The analyst comments "We are adding ServiceNow to our Conviction List and reiterate our Buy with a $695 price target. On 6/8, we hosted a virtual NDR with ServiceNow CEO Bill McDermott and CFO Gina Mastantuono. We came away incrementally positive on ServiceNow's improving near-term fundamentals with potential to accelerate subscription revenues in C22. We remain bullish, and believe with the stock trading at 14x EV/NTM Sales, below its pre-pandemic multiple of 15x, and at a 0.5x EV/Sales/Growth on our C22 revs estimate, current levels represent a compelling entry point. Since reporting F1Q21 results on 4/28, the stock is down (17%) vs. the NASDAQ down (1%)."

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 $464.71 yesterday.

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