Bernstein SocGen on ServiceNow (NOW): 'Strategy seems strong'

Bernstein SocGen Group analyst Peter Weed reiterated an Outperform rating and $248.00 price target on ServiceNow (NYSE: NOW).

The analyst commented: "$9B+ AI ACV in 2030? Strategy seems strong; At the analyst day in May, ServiceNow shared their new “AI everywhere” product packaging and updated long-term guidance to $30-32B ACV by 2030 with ~30% contribution from AI. We’ve been digesting its impact on customers, who responded with some level of grumbling (see our July CIO roundtable as an example). With that friction in mind, we have been asking ourselves: do we like this strategy? is $32B ACV in 2030 reasonable? is $9B+ of AI-derived ACV possible? Particularly this last point requires more than just upsell to AI-enhanced SKUs, the company expects consumption AI to be a material contribution. This raises the obvious question about whether that seems like a stretch, or likely possible."

For an analyst ratings summary and ratings history on ServiceNow click here. For more ratings news on ServiceNow click here.

Shares of ServiceNow closed at $134.21 yesterday.

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