ServiceNow price target raised to $846 from $809 at Bernstein

Bernstein analyst Peter Weed raised the firm’s price target on ServiceNow to $846 from $809 and keeps an Outperform rating on the shares. ServiceNow’s Q1 GAAP revenue modestly beat guidance by +0.4% – vs. mid-1% beat range since the beginning of macro headwinds in mid-2022, the firm notes. Add to that its weakest quarter-over-quarter $1M customer addition, plus the smallest estimated Q1 incremental ACV from new customers since 2020, and Bernstein can see some reasons to be somewhat bearish on the print. On the other hand, forward-looking revenue signals were strong, and non-GAAP gross margin continued to beat at 30.4%, the firm says.