ServiceNow (NOW) Stock Price Target Raised at JMP

NEW YORK (TheStreet) -- Shares of ServiceNow (NOW) - Get Report are down 0.75% to $69.73 early Tuesday morning despite JMP Securities increasing its price target on the stock to $101 from $97 and maintaining its "market outperform" rating.

"The main highlight, in our view, is that ServiceNow reiterated its $4 billion revenue target in 2020," the firm said after attending the company's analyst day in Las Vegas yesterday.

ServiceNow reported revenue of $1 billion last year, but the Santa Clara, CA-based provider of cloud based solutions predicts to earn around $4 billion by 2020 after it expands into management software for human resources, customer service and security. However, this change will also increase competition with cloud software leader Salesforce.com (CRM), Investor's Daily reports.

"We continue to recommend ServiceNow because of its leadership position in the service management cloud, its growth rates and its ability to generate significant free cash flow," JMP analysts said in an investor note.

Separately, TheStreet Ratings rated ServiceNow as a "sell" with a score of D.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.

Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

This is driven by some concerns, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks are covered.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: NOW