Needham raised the firm’s price target on ServiceNow (NOW) to $1,150 from $1,075 and keeps a Buy rating on the shares after hosting the company for a group investor meeting last week. The size of the calendar year 2025 Renewal cohort is larger than previous years, which is expected to pressure current remaining performance obligation growth through the first nine months of theyear until customers renew in Q4, with a potential upside catalyst to the renewal cycle as customers migrate to Xanadu which includes GenAI capabilities and the Pro Plus SKU, the analyst tells investors in a research note. Additionally, Needham says Pro Plus pricing seems to be tracking in line, if not ahead of management’s targeted ~30% uplift, and Subscription Gross Margin is likely to see pressure next year.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on NOW:
- ServiceNow CEO sells $24.5M in common stock
- Workday initiated, Kraft Heinz downgraded: Wall Street’s top analyst calls
- ServiceNow & Microsoft expand strategic alliance to modernize’front-office’
- ServiceNow price target raised to $1,070 from $980 at Mizuho
- ServiceNow initiated with an Outperform at Scotiabank
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
