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ServiceNow (NYSE:NOW) was added as a long idea at Hedgeeye with the potential for 25% upside from current levels.
“After a choppy period in 2022, and through 1Q23, featuring several quarters of under-performance in backlog growth, the setup now features easy comps,” Hedgeye analyst Ami Joseph wrote in a note on Tuesday.
Hedgeye is almost 10% above Street for ServiceNow cRPO billings in F2Q23 and 25% ahead of next year’s (FY24) free cash flow.
“And while our upside moderates thereafter, we think a combination of elements will show ServiceNow sustaining north of 22% topline growth & waterfalling incremental profits,” Hedgeye’s Joseph added.
ServiceNow (NOW) ticked up 0.3% in trading on Tuesday.
ServiceNow (NOW) is scheduled to present at the BofA Global Technology Conference on Wednesday.
More on ServiceNow
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- ServiceNow Unleashes AI, Innovation To Strengthen Competitive Advantage