Evercore ISI Raises ServiceNow’s Price Target to $800, Expects Momentum to Continue
Evercore ISI analysts have expressed optimism about ServiceNow’s future, increasing the firm’s price target for the company’s shares from $725 to $800. They have also maintained an Outperform rating on the stock. According to them, ServiceNow’s solid performance is expected to continue, earning the company additional gains in the market.
Partner Survey Highlights Upward Bias in ServiceNow’s Estimates for 2024
A recent partner survey conducted by Evercore ISI sheds light on the positive trend that ServiceNow is experiencing. The survey included insights from 15 large ServiceNow partners, with six of them being labeled as “global elite” partners. The results of the survey indicate that the company’s momentum is picking up pace, which bodes well for its future prospects. Based on these findings, Evercore ISI believes that ServiceNow’s estimates for 2024 should have an upward bias, indicating potential growth for the company.
ServiceNow’s F4Q Results Expected to Beat Estimates, Analysts Say
Analysts at Evercore ISI anticipate that ServiceNow’s upcoming fourth-quarter results will surpass market estimates. The current revenue estimate for the company stands at $2.4 billion, in line with Evercore ISI’s own projection. Moreover, they expect the company’s CRPO growth to be around 20.5%, or 21% on a constant currency basis. These positive projections further support the notion that ServiceNow is on the right track for continued success.
ServiceNow’s FY24 Estimates Likely to Align with Analyst Expectations
Looking ahead to ServiceNow’s fiscal year 2024, analysts predict that the company’s estimates will align with market expectations. They anticipate a growth rate of approximately 21% for subscription revenue, in line with their own and Street estimates. Additionally, the analysts project that the company’s first quarter CRPO will be around 20-21%, possibly affected slightly by lower duration. These estimates demonstrate the analysts’ confidence in ServiceNow’s ability to maintain its positive trajectory.
Analysts Believe ServiceNow’s Strong Performance Will Support Current Share Levels
Evercore ISI analysts are confident that ServiceNow’s solid performance will continue to support the current levels of its shares. They believe that even a “beat/bracket” quarter, which falls within estimate ranges, will be sufficient to strengthen the company’s shares in the long run. Therefore, they expect ServiceNow’s shares to hold steady at their current levels, reflecting the market’s positive sentiment towards the company’s outlook.
Analyst comment
Positive news
As an analyst, I predict that the market for ServiceNow will continue to perform well. The increase in price target, positive survey results, expectations of beating estimates, alignment with analyst expectations, and confidence in strong performance all indicate that ServiceNow is on the right track for continued success.
