ServiceNow (NOW) PT Drops $ 745 at Morgan Stanley while RPO Growth Remains High but Slows

Morgan Stanley analyst Keith Weiss lowered its price target on ServiceNow (NYSE: NOW) to $ 745.00 (from $ 810.00) after the company reported current RPO growth of 30.5% YoY in Q4, slightly down from 32 % growth reported in Q4. Subscription revenues of $ 1,631 million grew 27% YoY or 29% in cc, again, a slight decrease from the 30% cc growth seen in Q4.

The analyst reiterated the Overweight rating, stating that “With rising interest rates and rising equity risk premiums, the WACC used in our target price methodology is moving from 8.8% to 9.5%, lowering our Target of Price from $ 810 to $ 745. Our forward estimates have not changed materially. “