Oppenheimer has revised its price target for ServiceNow (NOW, Financial), reducing it to $970 from a previous prediction of $1,200. Despite this adjustment, the firm continues to assign an Outperform rating to the shares, reflecting confidence in the company's potential.
The decision comes after ServiceNow delivered solid first-quarter results, showcasing disciplined cost management that could indicate upside potential relative to Q1 consensus estimates. However, Oppenheimer has noted rising macroeconomic challenges and geopolitical tensions that may temper purchasing activity across enterprise IT sectors and the federal government. This, in turn, could negatively affect ServiceNow's future guidance.
Nonetheless, Oppenheimer remains optimistic about ServiceNow's position as a fundamental growth entity. The firm anticipates that the upcoming Q1 earnings report will highlight strong adoption of generative AI technologies, robust margins, and reinforce ServiceNow's reputation as a reliable growth compounder.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 40 analysts, the average target price for ServiceNow Inc (NOW, Financial) is $1,090.56 with a high estimate of $1,426.00 and a low estimate of $716.00. The average target implies an upside of 36.35% from the current price of $799.82. More detailed estimate data can be found on the ServiceNow Inc (NOW) Forecast page.
Based on the consensus recommendation from 47 brokerage firms, ServiceNow Inc's (NOW, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ServiceNow Inc (NOW, Financial) in one year is $1057.11, suggesting a upside of 32.17% from the current price of $799.82. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ServiceNow Inc (NOW) Summary page.
