ServiceNow (NOW) Gets a Hold Rating from Oppenheimer

By Jason Carr

In a report released today, Brian Schwartz from Oppenheimer maintained a Hold rating on ServiceNow (NOWResearch Report). The company’s shares closed yesterday at $242.70, close to its 52-week high of $251.65.

Schwartz observed:

“ServiceNow generated another strong quarter of operating results and a higher outlook in its first quarter, which supports valuation. The business momentum looks strong and is visible with the quarterly results and 2019 financial targets ranking in the upper echelon for the SaaS/Applications industry, despite ServiceNow’s greater scale. Negatively, margin growth is moderating and guidance implies a down quarter in 2Q from one-time effects, but investors are likely to look beyond the development if the good returns remain (i.e., 30%+ subscriptions growth, strong cash flow, upside in results). Bottom Line: We see stock positioning as salient for near-term outperformance in the SaaS/Applications group given the YTD price/performance, and ServiceNow continues executing well and increasing customer lifetime values, which raises estimates. We remain sidelined on valuation.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 28.7% and a 77.9% success rate. Schwartz covers the Technology sector, focusing on stocks such as Instructure Inc, Salesforce.com, and MiX Telematics.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for ServiceNow with a $248 average price target.

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The company has a one-year high of $251.65 and a one-year low of $147.63. Currently, ServiceNow has an average volume of 2M.

Based on the recent corporate insider activity of 106 insiders, corporate insider sentiment is negative on the stock.

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ServiceNow, Inc. engages in the provision of enterprise cloud computing solutions. It offers customer and facilities service management, orchestration core, service mapping, cloud and portfolio management, edge encryption, performance analytics, service portal designer, visual task boards and configuration management database.