ServiceNow (NOW) Receives a Rating Update from a Top Analyst

By Carrie Williams

In a report released today, Brian Schwartz from Oppenheimer maintained a Hold rating on ServiceNow (NOWResearch Report). The company’s shares closed yesterday at $194.

Schwartz commented:

“ServiceNow generated strong 4Q:2018 results, and management set 30%+ billings and revenue growth targets in constant currency for 2019. The results and financial targets are upper echelon for the SaaS/Applications industry which supports valuation. The solid bookings results in 4Q combined with strong management commentary and an above-consensus growth outlook for 2019 are further proof points, along with our checks and survey work, that demand for enterprise SaaS/ Applications remains healthy. Negatively, margin growth is moderating, but investors are likely to look beyond the development if the good returns remain (i.e., 30%+ subscriptions revenue growth). Bottom Line: ServiceNow continues executing well, and management’s strategy of broadening the breadth of the platform’s reach beyond IT departments is clearly adding customer value and working. We remain sidelined on valuation.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 26.2% and a 75.9% success rate. Schwartz covers the Technology sector, focusing on stocks such as Salesforce.com, MiX Telematics, and Trade Desk Inc.

The the analyst consensus on ServiceNow is currently a Hold rating.

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The company has a one-year high of $206.30 and a one-year low of $137.60. Currently, ServiceNow has an average volume of 2.08M.

Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is negative on the stock. Most recently, in November 2018, Ronald Codd, a Director at NOW sold 15,000 shares for a total of $2,497,650.

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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.