Oppenheimer analyst Brian Schwartz assigned a Hold rating to ServiceNow (NYSE: NOW) today. The company’s shares closed yesterday at $183.86, close to its 52-week high of $194.81.
Schwartz said:
“ServiceNow reported a very solid quarter in its 2Q:2018, with the reported results above consensus estimates and a higher annual growth outlook in constant currency. Consistent with our preview, the 2Q sales execution looked strong, with upper- echelon SaaS industry growth metrics and bullish management commentary across geographies, Public Sector, and newer products. On balance, management did not improve the operating margin target for 2018 despite ~150bps outperformance in 2Q, and is signaling a bigger appetite for M&A over the next 12-36 months, which means the medium-term growth and margin framework for NOW remains uncertain, and may be a restraint on better investor sentiment. Bottom Line: We remain positive on ServiceNow’s fundamentals and management’s execution, but think NOW shares are fairly valued after a strong run-up YTD.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 28.9% and a 80.7% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.
ServiceNow has an analyst consensus of Strong Buy, with a price target consensus of $195.62.
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The company has a one-year high of $194.81 and a one-year low of $103.00. Currently, ServiceNow has an average volume of 1.71M.
Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock.
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ServiceNow, Inc. engages in the provision of enterprise cloud computing solutions. It offers customer and facilities service management, orchestration core, service mapping, cloud and portfolio management, edge encryption, performance analytics, service portal designer, visual task boards, and configuration management database.
