ServiceNow (NOW) PT Lowered to $314 at Needham & Company
Needham & Company analyst Jack Andrews lowered the price target on ServiceNow (NYSE: NOW) to $314.00 (from $320.00) while maintaining a Buy rating.
The analyst commented, "Following yesterday's preliminary announcement, NOW released its full 3Q19 results and hosted its earnings call. Outgoing CEO John Donahoe outlined his departure motives and provided additional context that suggests that he was solicited by Nike to join the firm. We believe incoming CEO Bill McDermott will not make material changes to strategy, as he cited a large organic opportunity and roughly outlined tweaks to value creation/selling motions. Despite the recent departure of high-profile executives, NOW provided metrics that suggest underlying trends in the organization remain unchanged. We exited the call mostly assuaged of the risks around recent organizational changes, and we continue to believe that NOW represents a high-quality software asset; we reiterate our BUY recommendation and adjust our PT to $314."