Analysts mostly hailed ServiceNow Inc.’s Q4 results by raising their price targets.
Piper Sandler analyst Rob Owens upgraded ServiceNow to Overweight from Neutral with an unchanged price target of $650 (20 percent upside).
Subscription billings acceleration and considerable deal strength “punctuated a solid 4Q result” from the company.
The analyst says that with digital transformation initiatives sustaining and IT spending outlook strong into 2022, ServiceNow is well-positioned to “capitalize on meaningful tailwinds.”
He believes investors should be opportunistic after the stock’s recent pullback.
Mizuho analyst Gregg Moskowitz raised the firm’s price target on ServiceNow to $650 from $615 and reiterated a Buy.
The company reported a strong close to the year with Q1 and 2022 guidance better than feared.
Looking forward, the analyst reiterates his expectation of continued high growth over the next few years.
Credit Suisse analyst Phil Winslow lowered the firm’s price target on ServiceNow to $800 from $850 (48 percent upside) and maintained an Outperform.
The analyst notes ServiceNow reported “strong” Q4 results-with, with the main highlight of cRPO growth of 29 percent year-over-year exceeding consensus of 27.4 percent year-over-year.
BMO Capital analyst Keith Bachman raised the price target on ServiceNow to $635 from $600 (17 percent upside) and reiterated an Outperform.
The company has had the most robust results among its covered names, alleviating investor concern about a slowdown in spending.
Bachman adds that he had previously named ServiceNow as one of his “preferred growth names,” and he sees Q4 having reinforced that view.
