ServiceNowToday
As of 01/10/2025 15:58 Eastern
- 52 week range
- $637.99
▼
US$1157.90
- P/E ratio
- 159.29
- Target price
- $1071.39
Up 60% from the lows at the end of 2024 and 200% from 2022, according to ServiceNow. New York Stock Exchange: NOW the share price should rise by at least another 20%. Growth will slow in 2024 but will still be strong in the low 20% range and is expected to remain so over the next three to five years, providing sufficient cash flow to enhance shareholder value.
The takeaway from analyst chatter is that this company has enormous potential for massive growth and an industry-leading ability to monetize AI by driving adoption. The adoption of AI services is in its earliest stages and is gaining momentum due to expanding use cases and penetration. This is a trend that will continue for decades to come. ServiceNow is well positioned to capitalize on this trend as its end-to-end solutions adapt to various industry verticals.
Analysts Raise Price Targets Ahead of ServiceNow’s Q4 Release
Analyst bullishness for 2024 continued into the first two weeks of 2025. MarketBeat tracked several changes in the first two weeks of January, all of which increased the price target. The consensus among the 29 analysts tracked by MarketBeat is that the stock is a moderate buy, and there is growing belief that it will hit a new high this year.
ServiceNow MarketRank™ Stock Analysis
- Overall MarketRank™
- 82nd percentile
- Analyst rating
- Moderate purchase
- Pros/Cons
- Growth potential 4.6%
- Short interest level
- Healthy
- Dividend Power
- N/A
- Environmental assessment
- -0.80
- Mood News
- 0.88
- Insider trading
- Sale of shares
- Project Profit Growth
- 26.17%
See full analysis
The new targets suggest a move to $1,300 is possible, up nearly 25% from early January lows, and noteworthy names include Wells Fargo, Raymond James and JPMorgan Chase & Company. All are on critical watch lists. Wells Fargo tracks the stock’s above-average growth, and JPMorgan Chase has the stock on its value analyst list.
Data at the end of the third quarter caused analysts to lower their estimates for the fourth quarter, but the outlook remains optimistic. The company’s forecast calls for nearly 22% year-over-year growth, driven by customer growth, large customer growth and service penetration. The most important details will be the growth of RPO, which exceeded 26% in the third quarter. Slowing RPO growth is a sign that ServiceNow’s revenue growth may slow further, so the market will want that number to remain stable if it doesn’t grow.
Institutions support ServiceNow stock price action
Institutional activity is consistent with ServiceNow stock’s upward trend in 2024. The group owns more than 85% of the shares and has repurchased them on balance every quarter in 2024, with activity consistently increasing. Buyers, including fund managers and private and public investment capital, provide a strong base of support. However, their performance raised concerns in the first two weeks of the year when net sales were reported. If this trend continues, late 2024 could be the peak point for this market.
In addition to growth, analysts and institutions are interested in ServiceNow’s balance sheet. The company’s growth is supported by growing and improving cash flow, which it uses to strengthen its balance sheet and enhance shareholder value. The balance sheet is a fortress with net cash, ultra-low leverage and declining liabilities. Total liabilities fell more than 6% in the third quarter, while assets rose, causing shareholders’ equity to increase nearly 22% year over year. Similar improvements are expected in 2025, and long-term forecasts include accelerated share repurchases and the possibility of dividend distributions.
Technical Forecast: ServiceNow retreats from peak, uptrend continues
ServiceNow’s share price has pulled back from its peak reached in late 2024 and may struggle to make gains in early 2025, but the uptrend continues. Critical support lies near $950 but is unlikely to be reached given the strength of the uptrend leading to the peak. Indicators, including MACD convergence and extremes, suggest that market strength is building and that new highs will be made this year. The risk is that the market rebounds from the pullback but tops out at current highs and enters a trading range from which problems may arise.
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