Raymond James starts ServiceNow at 'outperform' with $1,200 target

Investing.com -- Raymond James initiated coverage of ServiceNow Inc (NYSE:) with an "outperform" rating and a price target of $1,200 given company’s strong growth prospects at scale and its potential in artificial intelligence monetisation.

The brokerage highlighted ServiceNow's ability to sustain 20%-plus growth at a $10 billion revenue scale, noting its parallels to software giants like Microsoft (NASDAQ:), Salesforce (NYSE:), and Adobe (NASDAQ:).

AI opportunities, including Generative AI and new solutions like Workflow Data Fabric, could drive incremental revenue and solidify its role as a data system of record, Raymond (NS:) James said.

ServiceNow's diversification into customer and employee workflows, along with high client retention and expansion rates, support its long-term growth durability, the note added.

Raymond James assigned a valuation of 16 times estimated 2026 revenue, reflecting confidence in the company's blend of high growth and strong cash flow margins.