Piper Jaffray analyst Alex Zukin believes ServiceNow needed to provide a bullish long term free cash flow margin target and give positive commentary about new product initiatives at yesterday's analyst day in order for the stock to continue to work. The company passed these tests "with flying colors," Zukin tells investors in a post-analyst day research note. He views ServiceNow's new long term FCF margin target of 30%-32% as "very solid." Zukin keeps an Overweight rating on the stock with a $90 price target.

Citi analyst Tyler Radke raised the firm's price target on ServiceNow to $906 from $896 and keeps a Buy rating on the shares. The analyst maintains a positive view on ServiceNow, holding estimates just above the high end of guidance as the firm's partner checks suggest solid demand and further Pro Plus interest. Commentary continued a similarly positive tone to Q4, as partners saw larger deal sizes and stronger pipelines than this time last year, the analyst tells investors in a research note. Citi says that while the shares have outperformed peers and the current valuation creates a high bar, a "beat/raise" quarter heading into the analyst and second half of 2024 growth acceleration "provide a positive event path."