Needham analysts increased their price target for ServiceNow (NYSE:NOW) to $900 from $660, while reiterating their Buy rating.

The analysts maintained a positive outlook on ServiceNow shares leading up to the company's earnings announcement on Wednesday. They believe that the management's conservative approach to the 2024 Subscription Revenue target of $10.4 billion, set during the May 2023 Financial Analyst Day, leaves room for outperformance.

At the time of this forecast, ServiceNow had not yet launched its Pro+ SKUs, finalized SKU pricing, or fully gauged customer interest and pipeline development. Moreover, the company had not incorporated its GenAI offerings into the product roadmap.

Given ServiceNow’s subscription revenue model and its consistent outperformance throughout 2023, the analysts expect the company to surpass its initial $10.4 billion target (with a consensus estimate of $10.5 billion). They emphasized ServiceNow's potential as a sustainable growth company, with over 20% annual growth driven by its subscription-based revenue model, comprehensive platform offerings, and the emerging monetization of its GenAI technology.