ServiceNow price target raised to $716 from $640 at Guggenheim

Guggenheim raised the firm’s price target on ServiceNow to $716 from $640 and keeps a Sell rating on the shares. The IT spending environment has remained consistent with recent levels, which are not bad but are about half of what they are in “normalized” periods, the analyst tells investors. Additionally, the firm believes investors have become overly optimistic of the growth in IT spending and estimates current IT spending reflects the digestion of excess spending. ServiceNow is a name that is “set up well” for this reporting cycle, but next year presents challenges, the firm believes