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Buy cloud play ServiceNow before earnings on accelerating growth, UBS says

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Investors should purchase ServiceNow shares as its successful transition to an expanded cloud services offering will lead to sustainable long-term growth, according to UBS, which reiterated its buy rating on the company.

"Our positive thesis remains intact, we think NOW is becoming a true cloud platform and remind investors that if the company delivers on this with consistent execution, shares will see meaningful support beyond current levels," analyst Brent Thill wrote in a note to clients Tuesday.

"Our ongoing checks w/ NOW customers, prospects and partners remain notably positive."

ServiceNow is scheduled to announce third-quarter financial results Wednesday.