ServiceNow Stock Surpasses Analyst Targets: What’s Next for Investors?
In recent trading, shares of ServiceNow Inc (Symbol: NOW) have crossed above the average analyst 12-month target price of $942.41, changing hands for $956.58/share. Analysts now face a decision: they can either downgrade the stock due to valuation concerns or raise their target prices if they believe the company’s prospects warrant such an adjustment. Investor sentiment may hinge on whether recent business developments are promising enough to justify a higher target price.
There are 32 different analyst targets within the Zacks coverage universe contributing to that average for ServiceNow Inc. However, the average is merely a mathematical representation, encompassing a range of opinions. Some analysts set lower targets, with one suggesting a price of $716.00, while another has set a target as high as $1100.00. The standard deviation among these targets is $88.592, indicating some variation in outlooks.
The importance of looking at the average NOW price target lies in tapping into the “wisdom of crowds.” This approach synthesizes the views of multiple analysts rather than relying on a single perspective. With NOW surpassing the target price of $942.41/share, investors need to evaluate whether this level represents a stopping point on the path to even higher valuations or if the stock has become overvalued, prompting a re-evaluation of their positions. Below is a table showcasing the current opinions of analysts covering ServiceNow Inc:
| Recent NOW Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 28 | 28 | 28 | 28 |
| Buy ratings: | 2 | 2 | 2 | 2 |
| Hold ratings: | 2 | 2 | 2 | 2 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 1.3 | 1.3 | 1.3 | 1.3 |
The average rating in the previous table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com. You can access the latest Zacks research report on NOW — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
