RBC Capital analysts raised their price target for ServiceNow (NYSE:NOW) to $1,210 from $1,045, reaffirming an Outperform rating on the stock. The increase reflects confidence in the company’s ability to sustain long-term growth, driven by its expanding role in enterprise operations and the ongoing integration of generative AI technologies. ServiceNow is positioned as a gold-standard investment for the next 5-10 years, with profitable, primarily organic growth expected to continue. The company is evolving beyond its IT origins, offering a platform that enables enterprises to build custom SaaS applications for HR, finance, legal, facilities, and procurement. This broadening scope positions ServiceNow as a key player in the enterprise software market. The $1,210 price target is based on a 19x EV/revenue multiple for 2025, representing a slight premium to peers due to ServiceNow’s superior growth and margin profile. On a free cash flow basis, this translates to a 60.5x EV/2025 FCF multiple. With generative AI in its early stages, ServiceNow is well-positioned to capitalize on this transformative technology over the next decade, supporting its trajectory as a foundational platform for enterprise innovation.
S erviceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. It operates the Now platform for workflow automation, artificial intelligence, machine learning, robotic process automation, performance analytics, electronic service catalogs and portals, configuration management systems, data benchmarking, encryption, and collaboration and development tools. The company also provides information technology (IT) service management applications;
