ServiceNow (NYSE:NOW) Price Target Cut to $157.00 by Analysts at Citigroup

Key Points

• Citigroup lowered ServiceNow’s price target to $157 from $170 but maintained a “buy” rating, implying roughly 43.7% upside from the reported $109.25 share price. Analysts overall rate the stock “Moderate Buy,” with an average target of $154.26.
• ServiceNow shares fell $40.88 to $109.25 amid concerns about slower subscription bookings, contracted revenue and fourth-quarter growth. The company’s $1.00 quarterly EPS missed estimates, although revenue rose 20.5% year over year to $4.11 billion and exceeded expectations.
• The company continues expanding its enterprise AI strategy through partnerships with OpenAI and HPE, while analysts remain divided over whether AI-driven demand will offset concerns about slower traditional workflow-software growth.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective reduced by investment analysts at Citigroup from $170.00 to $157.00 in a report released on Thursday, Benzinga reports. The firm presently has a "buy" rating on the information technology services provider's stock. Citigroup's price target points to a potential upside of 43.71% from the company's current price.

NOW has been the subject of a number of other research reports. Truist Financial set a $150.00 target price on shares of ServiceNow and gave the company a "buy" rating in a research report on Thursday. Yorkville Ives initiated coverage on ServiceNow in a research note on Monday, October 5th. They set an "outperform" rating and a $160.00 target price for the company. Royal Bank Of Canada set a $165.00 price target on shares of ServiceNow in a research note on Thursday. Canaccord Genuity Group set a $145.00 target price on ServiceNow in a report on Thursday. Finally, JPMorgan Chase & Co. upped their price target on shares of ServiceNow from $145.00 to $150.00 and gave the company an "overweight" rating in a research report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $154.26.

ServiceNow Stock Performance

Shares of ServiceNow stock traded down $40.88 during trading on Thursday, hitting $109.25. 59,993,968 shares of the stock were exchanged, compared to its average volume of 21,512,014. The stock has a market capitalization of $112.96 billion, a price-to-earnings ratio of 68.00, a price-to-earnings-growth ratio of 2.92 and a beta of 0.99. The company has a fifty day moving average price of $139.55 and a 200-day moving average price of $115.79. ServiceNow has a 1-year low of $81.24 and a 1-year high of $192.97. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing analysts' consensus estimates of $1.02 by ($0.02). The business had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The company's revenue for the quarter was up 20.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $4.82 EPS. As a group, equities analysts predict that ServiceNow will post 2.23 EPS for the current fiscal year.

Insider Activity at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 2,034 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares in the company, valued at approximately $2,706,760.35. This trade represents a 10.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the transaction, the director directly owned 43,990 shares of the company's stock, valued at $5,960,645. This represents a 5.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 14,081 shares of company stock worth $1,937,904 over the last ninety days. Insiders own 0.34% of the company's stock.

Institutional Trading of ServiceNow

A number of institutional investors have recently bought and sold shares of NOW. Traynor Capital Management Inc. increased its position in ServiceNow by 39.0% in the third quarter. Traynor Capital Management Inc. now owns 62,823 shares of the information technology services provider's stock worth $8,419,000 after buying an additional 17,634 shares in the last quarter. Bank Julius Baer & Co. Ltd Zurich lifted its position in shares of ServiceNow by 3,959.0% during the 3rd quarter. Bank Julius Baer & Co. Ltd Zurich now owns 736,917 shares of the information technology services provider's stock valued at $98,235,000 after buying an additional 718,762 shares in the last quarter. Greenleaf Trust lifted its position in shares of ServiceNow by 408.2% during the 3rd quarter. Greenleaf Trust now owns 109,783 shares of the information technology services provider's stock valued at $14,712,000 after buying an additional 88,182 shares in the last quarter. Nippon Life Global Investors Americas Inc. grew its stake in shares of ServiceNow by 396.2% during the 3rd quarter. Nippon Life Global Investors Americas Inc. now owns 83,270 shares of the information technology services provider's stock valued at $11,159,000 after acquiring an additional 66,490 shares during the period. Finally, Columbia Bank grew its stake in shares of ServiceNow by 9.5% during the 3rd quarter. Columbia Bank now owns 18,670 shares of the information technology services provider's stock valued at $2,502,000 after acquiring an additional 1,612 shares during the period. Institutional investors own 87.18% of the company's stock.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its partnership with OpenAI to bring governed AI agents, cybersecurity capabilities and agentic development tools into enterprise workflows, supporting management’s long-term AI strategy. ServiceNow and OpenAI partnership
• Positive Sentiment: HPE selected ServiceNow for a five-year agreement to support its Cloud & AI business, while ServiceNow also launched a Control Tower Alliance focused on secure enterprise AI adoption. HPE ServiceNow agreement
• Positive Sentiment: Several analysts remained constructive after the results. Piper Sandler reaffirmed an overweight rating with a $175 target, while Oppenheimer maintained outperform with a $165 target; these targets imply substantial potential upside from current levels. Analyst views on ServiceNow
• Neutral Sentiment: Third-quarter revenue rose 20.5% year over year to $4.11 billion, exceeding the $4.09 billion consensus estimate. ServiceNow also raised its AI-related sales target, indicating continued demand, although investors focused more heavily on forward bookings trends. ServiceNow third-quarter results
• Negative Sentiment: Adjusted earnings of $1.00 per share missed the $1.02 estimate, while acquisition-related costs and higher debt and interest expenses raised questions about profit growth and cash-flow conversion. ServiceNow earnings miss
• Negative Sentiment: Management’s outlook for slower growth in subscription bookings, contracted revenue and fourth-quarter revenue was the primary catalyst for the decline. Investors viewed the guidance as evidence that enterprise customers may be moderating software spending. ServiceNow bookings outlook
• Negative Sentiment: The weaker outlook has reignited fears that generative AI could reduce demand for traditional workflow and help-desk software, pressuring ServiceNow’s valuation and weighing on other software stocks as well. ServiceNow AI disruption concerns

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company's products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.

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