UPDATE: ServiceNow (NOW) PT Raised to $700 at Morgan Stanley as Billings Growth Beats by 25%

July 29, 2021 2:10 AM EDT
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Price: $665.87 +0.49%

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(Updated - July 29, 2021 8:50 AM EDT)

Morgan Stanley analyst Keith Weiss raised the price target on ServiceNow (NYSE: NOW) to $700.00 (from $662.00) after the company reported Q2 Constant Currency (cc) Constant
Duration subscription billings growth at +25% YoY, 5% points ahead of consensus.

The analyst reiterated an Overweight rating, stating "ServiceNow saw strength across their IT Service Management (ITSM), IT Operations Management (ITOM), Customer Workflow and Creator Workflow segments. Management spoke bullishly to accelerating new Annual Contract Value (ACV) growth in the quarter, expanding pipelines into the second half and better coverage ratios giving them confidence to increase the subscription billings guide for the second half of FY22. CFO Gina Mastantuono remarked on the conference call, "We absolutely expect continued acceleration in net new, and we are feeling really good about both the Q3 as well as the full year increase in billings guidance."

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