07:55 AM EDT, 04/25/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We drop our target price to $841 from $852 on a P/E of 60x our NTM EPS view of $14.02, above its 1-year average as NOW consolidates share in ITOM/ITSM and builds Gen AI momentum. We lift our 2024 EPS forecast to $13.54 from $13.10, but trim our 2025 EPS view to $16.15 from $16.35. NOW posted Q1 sales of $2.6B, above consensus by $10M, while non-GAAP EPS of $3.41 beat by $0.28. Sales rose 24.2% Y/Y, led by Subscription growth of 24.5%, slightly lower than expected, from fewer transactions with ACVs above $1M (-10.6% Y/Y). FX also contributed to a 50 bps headwind to subscription sales and RPO growth (+26.4% Y/Y). NOW raised the midpoint of its full-year subscription sales guide marginally ($3M), which includes a projected $17M negative impact from FX. Excluding FX, we think guidance suggests underlying demand for NOW's platform continues to be healthy, fueled by multi-product deals and demand for its Pro Plus tier as enterprise customers begin Gen AI adoption to drive productivity and workflow optimization.