ServiceNow price target raised to $950 from $881 at Morgan Stanley

Morgan Stanley raised the firm’s price target on ServiceNow (NOW) to $950 from $881 and keeps an Equal Weight rating on the shares. Q1 cRPO growth of 22% in constant currency exceeded consensus by 50 basis points and Gen AI momentum continues as Now Assist deals grew 150% quarter-over-quarter and adoption grew to 12% of the customer base, the analyst tells investors. Derisking the forward guidance with a modest reduction in the constant currency subscription target “look to have hit the mark with investors” but proving out a strong positioning for an emerging Agentic opportunity is likely key to sustaining momentum in shares, the analyst added.