Based on the provided data and context, I'll analyze ServiceNow's (NOW) price prediction for 2025.
Technical Analysis
The stock is currently trading at $937.79, showing a significant decline of -3.12% in the last trading session. The technical indicators suggest:
- Current price is below the 5-day moving average of $975.53
- Trading below the 10-day MA of $988.87
- RSI at 31.12 indicates approaching oversold territory
- MACD showing bearish momentum with -28.52 reading
Analyst Forecasts and Price Targets
According to recent analyst reports:
- Evercore ISI maintains a Buy rating with $1,150 price target
- Bank of America Securities has a Buy rating with $1,280 target
- J.P. Morgan maintains a Buy with $1,200 target
- The consensus price target from 31 analysts is $1,129.72, suggesting a 20.47% upside potential
Growth Catalysts for 2025
- AI Momentum:
- 150% quarter-on-quarter growth in agentic AI adoption
- AI implementation driving 20% productivity increases across sales, customer service, HR and IT support
- 16x improvement in sales prospect conversion rates
- Financial Outlook:
- Q1 2025 subscription revenue guidance: $2.995-3.0 billion
- Full-year 2025 subscription revenue forecast: $12.635-12.675 billion
- Board authorized additional $3 billion share repurchase program
Price Prediction Scenarios for 2025
Based on analyst forecasts and technical analysis, here are the potential scenarios:
Bullish Case ($1,300-1,400):
- Successful AI monetization acceleration
- Better-than-expected subscription revenue growth
- Probability: 35%
Base Case ($1,000-1,200):
- In-line with guidance execution
- Steady AI adoption growth
- Probability: 45%
Bearish Case ($800-900):
- FX headwinds impact
- Slower AI monetization
- Probability: 20%
Conclusion
The most likely scenario points to NOW reaching $1,100-1,200 by end of 2025, representing ~15-25% upside from current levels. This is supported by:
- Strong AI adoption momentum
- Robust subscription revenue growth
- Positive analyst sentiment
- Healthy balance sheet with share buyback support