ServiceNow (NOW) PT Raised to $900 at Wells Fargo

Wells Fargo analyst Michael Turrin raised the price target on ServiceNow (NYSE: NOW) to $900.00 (from $875.00) while maintaining a Overweight rating.

The analyst comments "We model at the high end of the guide for Q1 subs rev growth at cc (23.5-24.0%), cRPO growth at cc (20.0%) and OM (29.0%), and expect historical patterns of outperform hold (i.e., a 1.0-1.5% top-line beat + margin flow-thru). NOW's guide for 20% y/y cc cRPO growth implies ~300bps decel q/q, which we see as unlikely given the sharpness of the decel + historical cRPO beat pattern (avg'd ~200bps in FY23), even despite 150bp headwind in Q1 from shift to 12-mo Fed deals (& 200bps in 2Q)."

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