Stifel Reiterates Buy Rating on ServiceNow (NOW)

Stifel analyst Brad R. Reback reiterated a Buy rating and $1,175.00 price target on ServiceNow (NYSE: NOW).

The analyst commented, "Monday morning, ServiceNow announced that it has entered into an agreement to acquire Moveworks, a company that operates a front‑end AI assistant and enterprise search platform, for $2.85B in cash and stock, which we highlight marks ServiceNow's largest acquisition to date. While ServiceNow's workflows and Assist/Agent capabilities have been focused on serving the role of back-end agents/ fulfillers of tickets, the acquisition of Moveworks expands the reach of ServiceNow's Assist/Agent capabilities to now include front-end requestors of tickets, and also gives ServiceNow an entrance into the enterprise search market.Net/net, we believe that this acquisition expands both ServiceNow's serviceable addressable market by expanding the reach of their agentic workflows to more end users, and their total addressable market through the entrance into enterprise search. While management indicated that the contribution to FY26 subscription revenue is unknown, we highlight that management reiterated their FY26 $15B+ subscription revenue target is on an organic basis."

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 $783.83 yesterday.

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