UPDATE: JG Capital Upgrades ServiceNow to Overweight on Billings, Market Share Momentum

JG Capital upgraded ServiceNow

from Neutral to Overweight and announced a $38.00 price target. JG Capital noted, "ServiceNow (NOW) reported a strong Q4 and guided in-line with our estimates for Q1E. Mgmt guided for subscription GMs to increase to 73.5% in Q1E, reflecting increased utilization of their new datacenter. Clearly, NOW continues to gain share from CA and BMC, which appear to have no great response to NOW's low priced SaaS offering. While we had picked up some negative feedback from our field checks regarding scalability issues, it doesn't appear to have slowed NOW's momentum. We note billings accelerated q/q." ServiceNow closed at $30.20 on Wednesday.