Needham & Company Starts ServiceNow (NOW) at Buy

Needham & Company analyst Mike Cikos initiates coverage on ServiceNow (NYSE: NOW) with a Buy rating and a price target of $660.00.

The analyst comments "ServiceNow is built on a single code base, a single data model, and a single database. As a result, the company's extensible platform drives a high rate of innovation in solving new use-cases for customers, which is evident in the projected CY25 TAM of $220 Billion (up from $13.6 Billion in 2012). ServiceNow provides customers a roadmap, flexibility, and unified platform to embrace Digital Transformation initiatives - consolidating data from individual records to deliver a "system of action." Meanwhile, Generative AI accelerates both the need and use-cases for ServiceNow in our view. We believe the company's strong positioning with CIOs and its portfolio suite can sustain Subscription Revenue growth in excess of 20% with Free Cash Flow Margin moving higher from 30% today. We initiate coverage with a Buy rating and $660 Price Target."

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 $554.72 yesterday.

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