11:51 AM EST, 03/06/2025 (MT Newswires) -- ServiceNow's ( NOW ) growth outlook remains strong despite investor concerns over risks and pricing models, Oppenheimer said in a report Thursday.

Analysts at Oppenheimer recently met with investors and ServiceNow's ( NOW ) head of investor relations, Darren Yip, in San Francisco. The firm believes ServiceNow's ( NOW ) growth will continue to benefit from strong core and adjacent markets, supported by a stable macro environment, leadership in generative artificial intelligence, international expansion, and industry momentum, with 2025 growth guidance serving as a baseline, the report said.

"While the Federal exposure remains an overhang on [ServiceNow ( NOW )] and last quarter's results and guidance left investors wanting more, we left the meeting incrementally positive on ServiceNow's ( NOW ) ability to show better results in the [Q1] earnings-update next month," Oppenheimer said.

ServiceNow ( NOW ) is well-positioned to achieve its Q1 guidance, supported by stable enterprise IT demand, strong AI partnerships, and multiple growth levers. While federal spending is slower in Q1, long-term prospects remain strong with expanding AI capabilities, high retention, and a large market opportunity, the report said.

Oppenheimer maintained an outperform rating on ServiceNow ( NOW ) with a price target of $1,200.

Price: 897.05, Change: -18.75, Percent Change: -2.05