ServiceNow price target raised to $900 from $660 at Needham

Needham raised the firm’s price target on ServiceNow to $900 from $660 and keeps a Buy rating on the shares ahead of its Q4 results this Wednesday. The analyst cites the management’s “embedded conservative assumptions” as ServiceNow first discussed its $10.4B Subscription Revenue target at the company’s Financial Analyst Day, but at the time, the company did not have its Pro+ SKUs on the market, had not discovered SKU pricing, and did not have a sense for pipeline build or customer interest. Given ServiceNow’s Subscription Revenue model and outperformance through 2023, the company can outperform the initial $10.4B target, Needham added.