When it comes to ServiceNow (NYSE:NOW), "the beat should go on," according to Evercore ISI analysts on Wednesday, who raised the firm's price target for the company's shares to $800 from $725, maintaining an Outperform rating on the stock.
While NOW shares have risen since the company's F3Q results and investors may need a little patience in the immediate near-term, Evercore ISI believes their partner survey, which includes thoughts from 15 large ServiceNow partners, "helps illustrate why estimates should have an upward bias in 2024 and highlights the potential upside from the Pro+ SKU."
The survey included 15 large partners, including six "global elite" partners, with Evercore ISI feeling the results point to the momentum ServiceNow is seeing in the market.
"As it relates to F4Q results, we expect NOW to deliver some modest upside to out/Street estimates of $2.4bn/$2.4bn in revenue and CRPO growth of ~20.5% (21% in c/c)," said the analysts.
"While we expect NOW's initial FY24 estimates will likely bracket our/Street estimates of ~21% subscription revenue growth and F1Q CRPO of 20-21% (including a slight drag from lower duration), we anticipate that a 'beat/bracket' quarter that leaves room for upside over the course of 2024 will be 'good enough' to support shares near current levels," they added.