Sundry Photography/iStock Editorial via Getty Images ServiceNow (NYSE:NOW) shares rose as much as 4% Thursday as some Wall Street analysts express confidence about the business-automation software company ahead of its quarterly results next week. Thursday’s gains added to ServiceNow (NOW) continuing to flex its muscles over the first three weeks this year, which have seen the company’s shares rise more than 10% since the end of 2022. Analyst Brad Sills, of Bank of America Securities, said ServiceNow (NOW) remains “a top pick” of his due to it being in a position to sustain growth levels among large cap software companies. Among the reasons Sills cited for ServiceNow’s (NOW) potential are its growth being driven by “incremental traction with newer employee and customer organizations,” which should lead to healthy fourth-quarter bookings. Sills has a buy rating and $500-a-share price target on ServiceNow’s (NOW) stock. Meanwhile, Citi analyst Tyler Radke also said he was more positive on ServiceNow (NOW) with its results coming up on January 25. Radke cited what he called “reseller checks [that] suggest solid new [or] expansion business momentum” with few reports of deals slipping as has been the case earlier in 2022. At Cowen, analyst Derrick Wood said his own survey of ServiceNow’s (NOW) business partners came back with largely “bullish” comments that suggest “the commercial business remains strong and we would expect a solid quarter in the enterprise as well. Wood has an outperform rating and $520-a-share target price on ServiceNow’s (NOW). Wall Street analysts on the whole have a strong buy rating on ServiceNow’s (NOW) stock, while Seeking Alpha authors give the shares a consensus rating of buy. However, Seeking Alpha’s Quant System, which consistently outperforms the stock market, gives ServiceNow (NOW) a rating of hold on its shares.
