ServiceNow price target raised to $1,020 from $825 at Oppenheimer

Oppenheimer raised the firm’s price target on ServiceNow to $1,020 from $825 and keeps an Outperform rating on the shares. Based on the firm’s preview mosaic, ServiceNow executed well and had a strong Q3. However, next week’s earnings set-up looks less favorable, with multiples already predicting good Q3 results and a materially successful outcome for the business over the FTM. In addition, there is a high 2025 subscription revenue growth expectation. In Oppenheimer’s view, management’s Q4 guidance is unlikely to raise growth estimates and may underwhelm investors. Nevertheless, the Q3 earnings update will likely reaffirm investors’ positive opinion on the business momentum and ServiceNow as a good fundamentals compounder.