Serve today
As of 03:58 PM Eastern
- 52-week range
- $637.99
▼
$1,157.90
- P/E ratio
- 159.29
- Price target
- $1,071.39
60% from lows in late 2024 and up 200% from 2022, Service now NYSE: Now There is at least 20% more to drive the stock price. Growth is slowing in 2024 but is still strong in the low 20% range and is expected to remain so for the next three to five years, providing sufficient cash flow to drive shareholder value.
The takeaway from analysts’ debate is that the company has enormous growth potential at scale and an industry-leading ability to monetize AI by driving adoption. adoption of AI services is in its early stages and is gaining momentum due to expanding use cases and penetration. This is a trend that has decades to play out. ServiceNow is well-positioned to benefit from that trend because its end-to-end solutions are compatible across industry verticals.
Analysts raise price targets ahead of ServiceNow Q4 release
Blish Analytical trends 2024 continued into the first two weeks of 2025. MarketBeat tracked several revisions in the first two weeks of January, all of which raised the price target. The consensus of 29 analysts tracked by MarketBeat is that the stock is a moderate buy, and there is growing confidence that it will set a new high this year.
ServiceNow MarketRank™ Stock Analysis
- Overall MarketRank™
- 82nd percentile
- Analyst rating
- buy medium
- upside/downside
- 4.0% up
- Low interest rate
- healthy
- The power of dividends
- N/A
- Environmental score
- -0.80
- Sense of news
- 0.85
- Insider trading
- Selling shares
- Prof. Increase in earnings
- 26.17%
The new targets mean a move to $1300 is possible, a gain of about 25% from the early-January low, and notable mentions from firms such as Wells Fargo, Raymond James, and JPMorgan Chase & Co. They all have stocks on critical watch lists. Wells Fargo is tracking it for above-average growth, while JPMorgan Chase has the stock on its analyst focus list for value.
Guidance at the end of Q3 caused analysts to dial them back Estimates for Q4But the outlook remains strong. The company’s guidance is for approximately 22% year-over-year growth driven by subscriber numbers, large subscriber growth, and service penetration. Critical details will include RPO growth, which rose to over 26% in Q3. Slowing RPO growth is a sign that ServiceNow’s revenue growth may decline further, so the market will want to hold this number steady if it doesn’t grow.
Organizations support price action in ServiceNow stock
Corresponds with institutional activity 2024 Uptrend ServiceNow in stock. The group owns more than 85% of the stock and has purchased the balance every quarter through 2024, with activity increasing sequentially. Buyers, including fund managers and private and public investment capital, provide a strong support base. However, their activity raised concerns in the first two weeks of the year, with net sales reported. If this trend continues, the late peaks of 2024 could mark the high-water point for this market.
In addition to development, analysts and organizations are interested in ServiceNow’s balance sheet. The company’s growth supports a growing and improved cash flow, which it uses to strengthen the balance sheet and drive shareholder value. The balance sheet is a fortress with net cash, ultra-low leverage, and declining liabilities. Total liabilities fell more than 6% in Q3 while assets increased, increasing shareholder’s equity nearly 22% year over year. Similar improvements are expected in 2025, and longer-term forecasts include the possibility of faster share buybacks and dividend payouts.
Technical View: The service now pulls back from a peak, the upside remains intact
ServiceNow’s stock price has pulled back from a peak in late 2024 and may struggle to find traction in early 2025, but the uptrend remains. Critical support is near $950 but is unlikely to be reached, given the strength of the rally to the top. Indicators, including convergent and extreme MACD readings, suggest that market strength is building and new highs will be established this year. The risk is that if the market recovers from the pullback but tops out at the current high, entering a trading range may make it difficult to break out.
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