ServiceNow and SAP Rated Resilient Amid AI Dominance, Demand Improves
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Software Resilience: BNP Paribas analyst Stefan Slowinski noted that despite major hyperscalers dominating in AI, ServiceNow and SAP are viewed as resilient software companies, showing signs of improving demand, indicating their strong competitive position in the market.
- Market Expectation Shift: Slowinski lowered ServiceNow's price target from $186 to $120, reflecting a cautious outlook on its future performance, while maintaining a $632 target for Microsoft, indicating confidence in that company.
- Survey Results Warning: The January survey revealed a deterioration in companies like Datadog and Databricks, which analysts found surprising, suggesting a shift to negative sentiment in the software sector that could impact future financial outlooks.
- Geopolitical Impact: With increasing geopolitical uncertainty, analysts fear that companies reporting at the end of January may struggle to recover performance in the crucial FQ4, particularly in the European market, potentially leading to cautious fiscal outlooks.
Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOW is 222.81 USD with a low forecast of 172.00 USD and a high forecast of 263.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 131.800
Low
172.00
Averages
222.81
High
263.00
Current: 131.800
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
