ServiceNow, Inc. (NYSE:NOW) is among the stocks with the best earnings growth for the next 5 years. On January 13, Brian Schwartz, an analyst at Oppenheimer, reaffirmed a ‘Buy’ rating on ServiceNow, Inc. (NYSE:NOW). With a price target of $200, the stock has an upside potential of 68%.
A day later, on January 14, Evercore ISI maintained an ‘Outperform’ rating on ServiceNow, Inc., keeping a price target of $225. The firm noted a stable demand pattern and growing adoption of the company’s Now Assist AI offering. Although the shares have declined in the last three months, the firm expects fourth-quarter results to showcase the company’s solid growth at scale. Since October, the stock has dipped by nearly 28%.
By 2026, the company’s AI strategy is set to exceed $1 billion in annual recurring revenue (ARR), with partner surveys pointing to steady demand and increasing interest, Evercore ISI highlighted, adding that ServiceNow, Inc. offers an appealing long-term risk/reward profile at its current valuation of about 22.5 times enterprise value to CY27 free cash flow.
ServiceNow, Inc. is a California-based provider of cloud-based solutions for digital workflows. Incorporated in 2004, the company operates the Now platform and delivers a diverse range of products, including customer service management, field service management applications, and source-to-pay operations.
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