Wells Fargo’s $625 target price

• Wells Fargo has increased the price target of ServiceNow Inc (NYSE:NOW) from US$565 to US$625. These are the details.

Wells Fargo has increased the price target of ServiceNow Inc (NYSE:NOW) from US$565 to US$625. Wells Fargo analyst Philip Winslow also maintains an “overweight” rating on the company’s stock. Winslow pointed out that based on factors such as revenue, earnings per share, subscription bills, free cash flow and other factors, ServiceNow’s third quarter performance was very strong.

This quarter, ServiceNow announced net income of $12.9 million (earnings per share of 7 cents), while net income for the same period last year was $40.6 million (earnings of 22 cents per share). Revenue increased by 30% from 885.8 million US dollars in the same period last year to 1.15 billion US dollars.

ServiceNow CEO Bill McDermott said in a statement: “Our outstanding third-quarter results exceeded everyone’s expectations, and we are improving our full-year guidance.” “The COVID is redefining the future of work, accelerating digital transformation, and Expanded the need to unify systems, silos and processes into the overall corporate workflow. ServiceNow is a platform for digital business. Customers are using Now Platform to create workflows for brave veterans, students, and knowledge workers. Consumers and many others around the world provide excellent experiences. We are hungry, humble, and passionately committed to creating the world of work and creating better jobs for people. We have never been so confident.”

ServiceNow also revealed that it currently has 1,012 customers with an annual contract value of more than $1 million, an increase of 25% over the same period last year, and it has also increased its guidance for the year. During the quarter, ServiceNow provided new workflows that can achieve speed, agility and flexibility. Platform and product innovations include the release of the Now Platform Paris version, which aims to help companies accelerate digital transformation by connecting teams, systems and work.

The company also launched many new products, such as secure workplace applications, hardware asset management, financial service operations, telecommunication service management, network performance management, legal service delivery, workplace service delivery and interconnected operations. From a vertical perspective, the third quarter is the largest quarter in the history of ServiceNow’s federal business, including the largest transaction in the history of the company. Plus ServiceNow also recently announced new and expanded partnerships with Accenture, Cisco, Deloitte, IBM, Microsoft Team, Uber for Business and Zoom.

“In a challenging pandemic environment, the third quarter was an excellent quarter for ServiceNow. We went beyond the high end of subscription revenue and subscription billing guidelines, highlighting the power of our product portfolio and meeting the changing needs of our customers Overall, we will see a strong momentum into the last quarter of this year, and our strong channels make me confident that we can continue to execute until 2021. I am in the process of becoming 10 billion US dollars I am very excited about the traction seen in the revenue company and the 21st century enterprise software-defined company.” ServiceNow CFO Gina Mastantuono explained.

Disclosure: I currently have a small position in the stock portfolio.