12 Best Cloud Stocks to Buy According to Wall Street Analysts

9. ServiceNow, Inc. (NYSE:NOW)

Analyst Upside: 5.38%

Number of Hedge Fund Holders: 106

ServiceNow, Inc. (NYSE:NOW) ranks among the best cloud stocks to buy according to Wall Street analysts. On July 2, Morgan Stanley analyst Keith Weiss raised the price target for ServiceNow, Inc. (NYSE:NOW) from $950 to $1,040 while maintaining a Hold rating on the company’s shares. With the extension beyond core IT workflows into areas like CRM and Industry workflows, the analyst claims that the new Total Addressable Market (TAM) analysis indicates a large market opportunity.

However, despite this potential, the company’s high enterprise value to free cash flow ratio suggests that its current valuation has already factored in these growth prospects.

The analyst states that a more optimistic outlook can’t be justified by currency fluctuations alone, even though they have served as a financial tailwind that has raised subscription revenue expectations.

ServiceNow, Inc. (NYSE:NOW) is a leading provider of cloud-based software solutions that enable corporations to streamline their digital workflows. The company operates the Now platform, a cloud-based platform with integrated AI that aids governments and multinational companies in digitizing their processes.