ServiceNow (NOW) Earns Buy Rating from Mizuho

Mizuho reiterated their buy rating on shares of ServiceNow (NYSE:NOW) in a research report released on Friday. They currently have a $190.00 target price on the information technology services provider’s stock.

“We expect total revenue ~$575mm (up 34% Y/Y) vs. consensus of $572mm (mgmt. stopped guiding to total revenue). Subscription revenue could print ~$530-535mm (up 37-38% Y/Y) vs. consensus of $530mm and guidance of $525-530mm. For profitability, EPS could print ~$0.38-0.39 vs. consensus of $0.37; CFFO expectations of $224mm seem reasonable given the tough compare and billings pull-forward into 4Q17. Conversations suggest ongoing momentum. Subscription billings guidance of $601-605mm (up 25-26% Y/Y) implies sequential subscription DR build of $76mm; mgmt. was likely conservative due to pull-ins and could deliver some upside. Assuming flat PS billings, consensus is largely in-line with guidance; we think results could print ~$610-615mm (up 27-28% Y/Y) as our checks indicate: 1) in-line discounting environment; 2) incremental use of transaction based pricing for more automated operational workloads; 3) competitive environment remains stacked in the company’s favor.”,” the firm’s analyst wrote.

A number of other brokerages also recently commented on NOW. KeyCorp boosted their target price on shares of ServiceNow from $165.00 to $194.00 and gave the stock an overweight rating in a report on Monday, March 19th. They noted that the move was a valuation call. Barclays reiterated a buy rating and issued a $150.00 target price on shares of ServiceNow in a report on Monday, January 15th. Piper Jaffray reiterated an overweight rating and issued a $160.00 target price on shares of ServiceNow in a report on Tuesday, January 16th. Credit Suisse Group reiterated a buy rating and issued a $165.00 target price on shares of ServiceNow in a report on Sunday, February 11th. Finally, Argus boosted their target price on shares of ServiceNow to $170.00 and gave the stock a buy rating in a report on Tuesday, February 13th. One investment analyst has rated the stock with a sell rating, six have given a hold rating, twenty-eight have given a buy rating and three have issued a strong buy rating to the company’s stock. The company presently has an average rating of Buy and an average target price of $155.93.

NOW stock opened at $168.90 on Friday. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 1.08. The stock has a market capitalization of $29,506.83, a P/E ratio of -160.86, a PEG ratio of 37.69 and a beta of 1.08. ServiceNow has a 1-year low of $88.08 and a 1-year high of $176.56.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, January 31st. The information technology services provider reported $0.35 earnings per share for the quarter, meeting the consensus estimate of $0.35. The firm had revenue of $546.37 million during the quarter, compared to the consensus estimate of $532.74 million. ServiceNow had a negative return on equity of 23.78% and a negative net margin of 7.71%. The firm’s quarterly revenue was up 41.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.25 earnings per share. sell-side analysts anticipate that ServiceNow will post 0.1 EPS for the current fiscal year.

In related news, Director Frederic B. Luddy sold 32,500 shares of the company’s stock in a transaction that occurred on Wednesday, April 18th. The stock was sold at an average price of $174.18, for a total value of $5,660,850.00. Following the sale, the director now owns 260,791 shares in the company, valued at $45,424,576.38. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Anita M. Sands sold 1,636 shares of the company’s stock in a transaction that occurred on Friday, February 2nd. The shares were sold at an average price of $150.51, for a total value of $246,234.36. Following the completion of the sale, the director now owns 12,704 shares in the company, valued at approximately $1,912,079.04. The disclosure for this sale can be found here. In the last quarter, insiders sold 522,808 shares of company stock worth $82,083,248. 3.30% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Comerica Bank boosted its position in ServiceNow by 4.6% in the fourth quarter. Comerica Bank now owns 8,813 shares of the information technology services provider’s stock valued at $1,282,000 after buying an additional 391 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. boosted its position in ServiceNow by 15.5% in the third quarter. Ladenburg Thalmann Financial Services Inc. now owns 3,238 shares of the information technology services provider’s stock valued at $381,000 after buying an additional 434 shares during the last quarter. Exane Derivatives boosted its position in ServiceNow by 90.3% in the fourth quarter. Exane Derivatives now owns 925 shares of the information technology services provider’s stock valued at $121,000 after buying an additional 439 shares during the last quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA boosted its position in ServiceNow by 15.5% in the 4th quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA now owns 3,429 shares of the information technology services provider’s stock worth $447,000 after purchasing an additional 461 shares in the last quarter. Finally, Pier 88 Investment Partners LLC boosted its position in ServiceNow by 14.9% in the 4th quarter. Pier 88 Investment Partners LLC now owns 3,733 shares of the information technology services provider’s stock worth $487,000 after purchasing an additional 485 shares in the last quarter.

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ServiceNow Company Profile

ServiceNow, Inc provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The company offers service management solutions for customer service, human resources, security operations, and other enterprise departments. It operates ServiceNow platform that provides workflow automation, electronic service catalogs and portals, configuration management systems, data benchmarking, performance analytics, encryption, and collaboration and development tools.

Analyst Recommendations for ServiceNow (NYSE:NOW)

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