ServiceNow (NYSE:NOW) Given New $140.00 Price Target at Citic Securities

Key Points

• Citic Securities cut its price target on ServiceNow from $168 to $140 while keeping a buy rating, implying about 39.8% upside from the prior close.
• ServiceNow shares fell 3.1% to $100.14 on Thursday, even as the stock remains well below its 52-week high of $211.48 and above its 52-week low of $81.24.
• The company’s latest quarter met earnings expectations at $0.97 EPS and slightly topped revenue estimates at $3.77 billion, with revenue rising 22.1% year over year. Analysts remain broadly positive, with a consensus rating of Moderate Buy and an average target price of $141.85.

ServiceNow (NYSE:NOW - Get Free Report) had its target price dropped by investment analysts at Citic Securities from $168.00 to $140.00 in a report released on Thursday,MarketScreener reports. The brokerage presently has a "buy" rating on the information technology services provider's stock. Citic Securities' target price would suggest a potential upside of 39.80% from the company's previous close.

NOW has been the subject of several other research reports. Barclays restated an "overweight" rating and issued a $134.00 price objective (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Deutsche Bank Aktiengesellschaft reduced their target price on ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a report on Thursday, April 16th. Sanford C. Bernstein reissued an "outperform" rating and issued a $236.00 target price (up from $226.00) on shares of ServiceNow in a research report on Wednesday, May 6th. Mizuho cut their price target on ServiceNow from $150.00 to $140.00 and set an "outperform" rating on the stock in a research report on Thursday, April 23rd. Finally, Raymond James Financial reduced their price objective on ServiceNow from $160.00 to $130.00 and set an "outperform" rating for the company in a research note on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $141.85.

ServiceNow Stock Down 3.1%

NOW traded down $3.16 on Thursday, reaching $100.14. The company's stock had a trading volume of 6,467,240 shares, compared to its average volume of 22,201,150. The company has a market capitalization of $103.25 billion, a price-to-earnings ratio of 59.63, a P/E/G ratio of 1.85 and a beta of 0.82. ServiceNow has a fifty-two week low of $81.24 and a fifty-two week high of $211.48. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The stock has a 50 day moving average of $99.35 and a two-hundred day moving average of $126.89.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts' consensus estimates of $0.97. The company had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm's revenue for the quarter was up 22.1% on a year-over-year basis. During the same quarter last year, the company earned $0.81 earnings per share. As a group, analysts forecast that ServiceNow will post 2.35 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Paul Fipps sold 3,696 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $101.77, for a total transaction of $376,141.92. Following the completion of the sale, the insider owned 8,061 shares in the company, valued at $820,367.97. This represents a 31.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares in the company, valued at approximately $2,712,312.60. This trade represents a 35.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 31,767 shares of company stock valued at $2,906,098. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

Hedge funds have recently added to or reduced their stakes in the company. IAG Wealth Partners LLC grew its holdings in ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 18 shares during the period. Noble Wealth Management PBC boosted its position in shares of ServiceNow by 400.0% during the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 128 shares in the last quarter. Millstone Evans Group LLC boosted its position in shares of ServiceNow by 400.0% during the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC grew its stake in shares of ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 135 shares during the period. Finally, Blueline Advisors LLC purchased a new position in shares of ServiceNow in the 4th quarter valued at about $25,000. Institutional investors and hedge funds own 87.18% of the company's stock.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Wall Street sentiment has turned more constructive, with Bank of America restarting coverage at Buy and setting a $130 price target, helping fuel a rebound in the shares. ServiceNow in focus as BofA restarts coverage with Buy rating
• Positive Sentiment: Several articles frame ServiceNow as a potential beneficiary of agentic AI, arguing that its workflow platform could become a control center for enterprise AI rather than a victim of AI disruption. Wall Street Is Warming Up to ServiceNow Stock. That’s Because It’s Now a Bet on Agentic AI.
• Positive Sentiment: A new bullish thesis highlights ServiceNow’s attractive valuation relative to growth, citing 20%+ subscription growth, 35%+ free cash flow margins, and expanding adoption of Now Assist and AI tools. NOW: Why A 20% Grower At 19x '27 EPS Doesn't Stay There
• Positive Sentiment: Brokerage coverage and market commentary continue to describe the stock as a moderate buy, with analysts generally expecting further upside despite prior underperformance. ServiceNow, Inc. Receives Consensus Recommendation of Moderate Buy from Brokerages
• Neutral Sentiment: Some pieces simply revisit the stock’s sharp decline over the past year and ask whether the pullback makes the name attractive again; these are valuation-focused rather than clear catalysts. After a 50% Drop, Is ServiceNow Stock Worth Buying?
• Negative Sentiment: One notable bearish voice, Jim Cramer, warned that buying ServiceNow may be overdone, which could temper enthusiasm if investors worry the recent rally has gone too far. Did Jim Cramer Call The Top On ServiceNow Stock?

About ServiceNow

ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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