The cloud provider ServiceNow announced its first quarter data last week, and it is convincing. The stock is currently trading at around US$372, a record high. The optimistic voices of analysts will soon arrive.
Analysis agency Bank of America (BofA) recommended buying ServiceNow shares and raising the target price from $370 to $408. During the Covid 19 crisis, the Now platform has proven to be an important tool for business continuity.
Strong outlook and optimistic outlook
In the second quarter of 2020, cloud providers from California expect subscription sales to grow 27% to 28% over the same period last year.
“Despite our financial health, many customers are currently in very difficult conditions, especially in industries that are severely affected by Covid-19. Therefore, our forecast is based on the following assumptions: In general, the greatest resistance will occur.
CEO Bill McDermott was very satisfied with the results and insisted on his mid-term sales target of $10 billion per year: “Due to the pandemic, it may not happen this year, but it will happen.”
Strategic acquisition
According to the “Forbes” ranking, ServiceNow is a leader in enterprise service management and the most innovative company in the world. The company has a very loyal customer base and knows how to grow organically through strategic and smart acquisitions. Recently, many companies from the AI field have been taken over, such as Appsee, Loom Systems and Passage AI.
After the convincing quarterly data was released, ServiceNow’s share climbed to a new record high. Since the March low, prices have risen by more than 50%. DERAKTIONÄR believes in cloud providers and hopes that the future business development will be very strong. The investor puts the file on his watch list and prepares to re-enter it.
Explanation of possible conflicts of interest: The author Emil Jusifov directly mentioned in the publication the following financial instruments or related derivatives that can benefit from any resulting price increases: ServiceNow.
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