CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target price to $852 from $771 on a P/E of 65x our 2024 EPS view on large deal momentum and revenue upside from GenAI demand. We increase our 2024 EPS forecast to $13.10 from $12.85 and start 2025’s at $16.35. NOW posted Q4 revenue of $2.44B, above consensus by $40M, and non-GAAP EPS of $3.11 beat by $0.33. Sales accelerated 25.6% (versus +20% in Q4 of the prior year) driven by a strong volume of large transactions; NOW notched 168 deals with annual contract values (ACVs) exceeding $1M, up 33% Y/Y. Although results benefited from easier comps, we see performance indicative of a more positive demand environment and NOW’s strong execution. RPO accelerated 28.6% Y/Y (versus 21.7% Y/Y in Q4 2022), reflecting enterprise appetite for more extensive, multi-year contracts, while large new logo adds continued at a solid pace. Now Assist is the fastest growing new product ever for the company, and we see expansion velocity strengthening as Now Assist becomes a meaningful driver of net new ACV growth ahead.