UPDATE: Canaccord Genuity Initiates Coverage on ServiceNow on Strong Market Position

In a report published Friday, Canaccord Genuity analyst Richard Davis initiated coverage on ServiceNow (NYSE: NOW) with a Buy rating and $55.00 price target.

In the report, Canaccord Genuity noted, “We believe ServiceNow is on the cusp of becoming one of the three key nextgeneration platforms in software, alongside Salesforce.com and Workday. NOW looks to us to be in a spot similar to CRM in the 2005-08 period, during which CRM 'punched above its weight class' as the firm emerged as a cloud standard-bearer, despite its relatively small revenue base. Not coincidentally, CRM shares advanced almost 5-fold over this period. Following the IPO ‘pop,' NOW shares have advanced more than 90% since June 29, 2012. In our opinion, this leaves plenty of room over the next few years for significant outperformance that will then transition into very good longer-term returns. We are initiating coverage with a BUY rating and $55 price target.”

ServiceNow closed on Thursday at $47.60.