Piper Jaffray Remains Sidelined Ahead of ServiceNow's (NOW) 4Q - PT to $75

Piper Jaffray reiterated a Neutral rating on ServiceNow (NYSE: NOW), and raised the price target to $75.00 (from $71.00), ahead of the company's 4Q earnings report. Piper Jaffray expects 4Q results at the top end of guidance, with potential for upside in the 2016 outlook despite an additional 2% FX headwind. However, Piper maintains a Neutral rating as the valuation is in line with NOW’s high growth peers, though further downward pressure on the shares could present a more attractive entry point.

Analyst Katherine Egbert commented, "We are warming up to NOW and expect Q4:15 results at the top end of guidance, with potential for upside in the 2016 outlook despite an additional 2% FX headwind. ServiceNow's software is in part a replacement for labor and its usage could become increasingly attractive if economic conditions deteriorate. We've boosted our PT to $75 from $71 but maintain our Neutral on valuation. NOW is scheduled to report Q4:15 results on Wednesday, January 27 after the close."

For an analyst ratings summary and ratings history on ServiceNow click here. For more ratings news on ServiceNow click here.

Shares of ServiceNow closed at $76.10 yesterday.

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