Bank of America (BofA) has revised its price target for ServiceNow (NOW, Financial) from $1,280 to $1,025, while maintaining a Buy rating on the company's shares. The decision follows feedback from channel partners, which suggests that the company's growth for the first quarter of 2025 is expected to align with BofA's initial forecast of a 20.5% year-over-year increase in constant currency remaining performance obligations (cRPO).
Despite this optimistic outlook for the first quarter, BofA has adjusted its growth forecasts for the second quarter and the full year of 2025, reflecting a more cautious sentiment from partners regarding the market environment. The growth projections for Q2 and the entire fiscal year have been trimmed to 18.5% and 19% respectively, down from previous estimates of 19.5% and 21%.
These revisions underscore the uncertainty that ServiceNow might face in sustaining its growth trajectory amid evolving market conditions. However, the retention of the Buy rating signals continued confidence in the company’s long-term prospects.
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.
