Analysts Stay Bullish on ServiceNow (NOW) After Earnings Report

ServiceNow, Inc. (NYSE:NOW) is one of the 10 Best AI Software Stocks to Buy Right Now. On January 30, Bernstein reiterated its Outperform rating on ServiceNow, Inc. (NYSE:NOW) with a price target of $219 after a sharp market sell-off.

Bernstein said that ServiceNow, Inc. (NYSE:NOW) now presents a “discount large cap growth” opportunity, pointing out that it appears relatively cheap compared with other large software companies with more than $50 billion in market cap when looking at the three-year growth against the price-to-free-cash-flow. The firm also noted that the usual premium given to growth stocks has “collapsed further,” which makes ServiceNow, Inc.’s (NYSE:NOW) even wider when compared to other large-cap growth software stocks.

On January 29, Cantor Fitzgerald also maintained its Overweight rating on ServiceNow, Inc. (NYSE:NOW) with a price target of $200 after the company’s quarterly earnings report.

Also on January 29, Stifel reduced its price target on ServiceNow, Inc. (NYSE:NOW) from $200 to $180 but kept its Buy rating following the company’s latest quarterly results, which led the stock to fall in after-hours trading.

Stifel analyst Brad Reback pointed out that the quarter “played out largely as expected,” with an organic upside of around 100 basis points. He noted that fourth-quarter checks were “somewhat mixed.”

The research firm noted that ServiceNow, Inc. (NYSE:NOW) offers “an interesting value” at current levels, trading at about 6 times revenue and 16 times free cash flow. However, Stifel highlighted that a broader shift in investor sentiment would be needed for the stock to be re-rated, and said that “what drives that shift remains unclear.”

ServiceNow, Inc. (NYSE:NOW) is an American software and technology company. It provides an AI platform that helps organizations digitize, automate, and manage workflows for enterprise operations.

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Disclosure: None. This article is originally published at Insider Monkey.