Kanpur Investment：[Original] Servicenow stock analysis： Can Buffett’s optimistic AI shares rose to $ 1050？

Source: Beast Finance Author: Beast Finance

Core viewpoint of Beast Finance:

(1) UBS has raised the target price of Servicenow from $ 900 to $ 1050.

(2) At present, investors’ concerns about Servicenow, including the US Department of Justice’s investigation of Carahsoft and its impact on its stock price.

(3) The technical analysis of Beast Finance’s technical analysis of Servicenow’s stock: US $ 945, $ 746; technical indicators tend to be cautious.

The stock price of Servicenow (now) rose 2%on October 8 because UBS analyst Karl Keirstead raised the target price of Servicenow from $ 900 to $ 1055.

This target price is currently the highest among Wall Street analysts, which means that Servicenow’s stock price still has 14.4%of room for increase in the future.Kanpur Investment

UBS analyst Keirstead’s optimistic view of Servicenow was discussed after discussing with the three partners (including its two largest partners) of ServiceNow.

These partners said that Servicenow’s performance greatly exceeded their growth goals, one of them pointed out that starting from this summer, the market’s demand for Servicenow has already experienced a cyclical recovery.

Wall Street Analyst’s view of Servicenow

Although UBS is very optimistic about Servicenow, not all Wall Street analysts have the same point of view.

For example, although Guggenheim has recently raised the target price of Servicenow from $ 640 to $ 716, it maintained a "sell" rating.The reason is that if Servicenow continues to maintain its current momentum, it may soon meet the goals set before, and Guggenheim’s investigation by the US Department of Justice is also concerned about Carahsoft (Carahsoft is the major government dealer of Servicenow).

Guggenheim believes that before the matter becomes more clear, the investigation by the US Department of Justice may affect the stock price of Servicenow.

Similarly, Piper Sandler, Wall Street Investment Bank, also warned that the Federal Investigation Agency’s raid on the Carahsoft headquarters may fluctuate to the stock price of Servicenow because a large part of its federal contracts were completed through Carahsoft.

Although Wall Street Investment Banks such as Stifel Financial (SF) and Piper Sandler have acknowledged that Servicenow has strong strength in execution and AI technology and raised its target price, there are still some Wall Street analysts still cautious about Servicenow.Lucknow Investment

At present, the concerns of some Wall Street analysts are mainly from. Facing potential growth deceleration and external market factors, these analysts are worried that the high valuation multiple of Servicenow can continue.

Because the current price -earnings ratio of the stock has exceeded 19 times, if the market conditions change, the premium may be difficult to prove that it is reasonable.

Strong second quarter performance and AI momentum

Despite these concerns, the performance of Servicenow’s second quarter is still impressive, with revenue increased by 22%year -on -year to $ 2.627 billion. After the adjustment, the income per share was 3.13 US dollars, exceeding the expectations of analysts.New Delhi Wealth Management

The company attributes this successful part to its production artificial intelligence (AI) product.

Servicenow’s CEO BILL

McDermott emphasized at the financial report meeting with major companies such as Honda, Stellandis, MRK), ADOBE (ADBE), Dell Technology, and SEG (STM), etc., and emphasized that "the new generation of artificial intelligenceThe momentum is real, and it is constantly enhanced. "

Looking forward to the future, ServiceNow plans to release the third quarter financial results on October 23.

At present, Wall Street analysts predict that the income per share is $ 3.45 per share, and the income is US $ 2.75 billion.

Servicenow also raised its annual revenue expectations to US $ 10.575 billion to US $ 10.585 billion, a year -on -year increase of 22%.The subscription revenue in the third quarter is expected to be between 2.66 billion and US $ 2.67 billion.

Servicenow’s leadership changes

CJ Desai, chief operator and president of Servicenow, has suddenly left the job because of recruitment decisions that conflict with corporate policies because of recruitment decisions. This is an incident worth investor attention.

But with the intervention of Chris Bedi as a temporary chief product officer, the management of Servicenow has solved this problem.

As the management of Servicenow has experienced these changes, investors are also weighing the company’s strong fundamentals and valuations and Carahsoft is being undergoing the relevant risks brought by the US Department of Justice.

There are many factors that affect the stock price of Servicenow, including analyst rating, financial performance, and market conditions. Therefore, beasts Finance analyzes whether the SERVICENOW stock price can reach $ 1050 through technical indicators.

Servicenow stock technology analysis

Since the beginning of 2023, Servicenow’s stock price has rebounded very strong, from $ 400 to the current $ 900 all the way.

Although there are some waves in the meantime, the rebound has continued to this day, and it is also very stable in terms of technical analysis.

Recently, I encountered some resistance near $ 945, but Beast Finance believes that this may be just a small wave.

Therefore, investors who want to establish a new multi -header can build a small position at a level of $ 940 at the current level of Servicenow, and adds positions when the stock price is higher than $ 945.Mumbai Investment

Investors who think that the stock callback is mature now also has a low -risk, high -return trading opportunity.

These investors can build short positions at the current level, and the stop loss is $ 948.If the stock does retreat, it will find the first support level near $ 746, and the empty investors can make a profit there.

Learn more and more detailed basic aspects and technical analysis of the Servicenow stocks or in -depth analysis of our 1 to 1, please pay attention and contact the Beast Finance.

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