ServiceNow’s Price Target Raised Ahead of Earnings Announcement
ServiceNow’s Price Target Raised Ahead of Earnings Announcement

ServiceNow’s Price Target Raised Ahead of Earnings Announcement

Jan. 22, 2024, 11:31 a.m., readers: 31

Needham analysts increased their price target for ServiceNow (NYSE:NOW) to $900 from $660, while reiterating their Buy rating. The analysts maintained a positive outlook on ServiceNow shares leading up to the company's earnings announcement on Wednesday. They believe that the management's conservative approach to the 2024 Subscription Revenue target of $10.4 billion, set during the May 2023 Financial Analyst Day, leaves room for outperformance. At the time of this forecast, ServiceNow had not yet launched its Pro+ SKUs, finalized SKU pricing, or fully gauged customer interest and pipeline development. Moreover, the company had not incorporated its GenAI offerings into the product roadmap. Given ServiceNow’s subscription revenue model and its consistent outperformance throughout 2023, the analysts expect the company to surpass its initial $10.4 billion target (with a consensus estimate of $10.5 billion). They emphasized ServiceNow's potential as a sustainable growth company, with over 20% annual growth driven by its subscription-based revenue model, comprehensive platform offerings, and the emerging monetization of its GenAI technology.


About NYSE: NOW

S erviceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. It operates the Now platform for workflow automation, artificial intelligence, machine learning, robotic process automation, performance analytics, electronic service catalogs and portals, configuration management systems, data benchmarking, encryption, and collaboration and development tools. The company also provides information technology (IT) service management applications;

Price: 772.93
Market cap: 158.5 billion USD
Eps: 8.38
P/e ratio: 92.24
Terminal Research: NOW
All news about: NOW


More news about NOW


ServiceNow’s Price Target Raised at Evercore
Jan. 10, 2024, 7:16 p.m.

Evercore ISI analysts increased their price target for ServiceNow (NYSE:NOW) from $725.00 to $800.00, …