Goldman Sachs initiated coverage on ServiceNow (NYSE:NOW) with a "Buy" rating. The firm set a price target of $205.00, suggesting a potential 40% upside. This positive outlook arrives despite the stock recently trading near its 52-week low.
Analyst Gabriela Borges anchored the rating. Borges projects ServiceNow will maintain a compound annual growth rate (CAGR) of approximately 20%. This growth trajectory is expected to continue through 2029.
Goldman Sachs bases its confidence on several factors. The bank cites ServiceNow’s unique position as a workflow engine. Furthermore, the company boasts strong revenue growth and robust gross profit margins, supported by expansion into new areas like CRM and ERP.