Analysts Point to Federal Contracts as Key Driver for ServiceNow (NOW) Growth

ServiceNow, Inc. (NYSE:NOW) ranks among the best software stocks to buy right now. On August 25, Stifel reaffirmed its $1,200 price target and Buy rating for ServiceNow, Inc. (NYSE:NOW), pointing to better federal business performance in the current quarter.

According to the firm’s research on government expenditure statistics through August 20, ServiceNow’s federal business is expected to grow by mid-single digits in the third quarter, up from a low double-digit drop in the second quarter.

Although the original statistics seemed to indicate a declining trend, Stifel pointed out that the upward trajectory was found by accounting for Department of Defense contracts, which are sometimes reported 90 days late, and the timing of a significant Veterans Affairs renewal worth $124 million.

ServiceNow, Inc. (NYSE:NOW) is a leading provider of cloud-based software solutions that enable corporations to streamline their digital workflows.

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Disclosure: None. This article is originally published at Insider Monkey.