ServiceNow (NOW) PT Lowered to $745 at Morgan Stanley as RPO Growth Remains Elevated but Slowing

Morgan Stanley analyst Keith Weiss lowered the price target on ServiceNow (NYSE: NOW) to $745.00 (from $810.00) after the company reported current RPO growth of 30.5% YoY in Q4, down slightly from the 32% growth reported in Q4. Subscription revenues of $1,631 million grew 27% YoY or 29% in cc, again, a slight deceleration from the 30% cc growth seen in Q4.

The analyst reiterated an Overweight rating, stating "With rising interest rates and a rising equity risk premium, the WACC used in our price target methodology moves from 8.8% to 9.5%, which brings our Price Target down from $810 to $745. Our forward estimates did not change materially".

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