Barclays analyst Raimo Lenschow has revised the price target for ServiceNow (NOW, Financial), reducing it from $1,200 to $967. Despite this adjustment, an Overweight rating is maintained on the shares as the firm anticipates the first quarter earnings will not significantly impact the U.S. software sector.
The firm notes that current channel checks indicate a weaker performance, though not alarmingly so. However, the primary focus for investors is expected to be on future guidance rather than immediate results in the upcoming earnings report. Barclays suggests that many management teams might not make substantial adjustments to their projections for Q1, given its relatively minor impact on the annual performance.
As a result, the firm anticipates that any significant developments or momentum shifts might not occur until the second quarter, leaving the market in a state of uncertainty for now.
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 $1,047.16 with a high estimate of $1,426.00 and a low estimate of $716.00. The average target implies an upside of 35.61% from the current price of $772.16. 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 $1056.38, suggesting a upside of 36.81% from the current price of $772.16. 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.
