ServiceNow (NOW) – Get Report rose Thursday after Morgan Stanley analyst Keith Weiss upgraded it shares to overweight from equal weight, citing the workflow software company’s growth potential.
Weiss lifted his share-price target to $652, the highest estimate on Wall Street, according to Bloomberg, from $559. ServiceNow shares recently traded at $513.92, up 2.15%, and have soared 83% year to date.
“A rising priority for workflow automation post-Covid well positions NOW to sustain 25%-plus revenue growth,” and sustainable free-cash-flow growth above 30%, Weiss wrote in a commentary, Bloomberg reports. That rate of FCF through 2023“ should prove the current valuation still attractive,” he said.
ServiceNow’s billings growth “sustained much better than peers throughout the downturn,” Weiss said. And new billings growth should rise in 2021, in line with demand, he said.
Morningstar analyst Dan Romanoff gave the company a healthy prognosis after its earnings report last month. “Sales