Guggenheim Lifts ServiceNow Target to $175 Before Third-Quarter Results

Guggenheim raised its price target for ServiceNow to $175 from $125, seeing potential for third-quarter results to top consensus estimates as the software company prepares to report next week.

The firm maintained its Buy rating, citing stable demand. Guggenheim also expects ServiceNow’s fourth-quarter outlook to be in line with expectations.

ServiceNow plans to release third-quarter results after the market closes Wednesday, Oct. 28.

For the second quarter, ended June 30, ServiceNow reported subscription revenue of $3.877 billion, up 24.5% from a year earlier. Current remaining performance obligations reached $13.20 billion as of June 30, a 21% year-over-year increase.