ServiceNow (NYSE:NOW) Price Target Lowered to $145.00 at Canaccord Genuity Group

Key Points

• Canaccord Genuity lowered its price target on ServiceNow to $145 (from $200) but kept a "buy" rating, a cut that the note says still implies roughly a 67% upside from the prior close.
• Despite the price-target cuts from multiple firms, ServiceNow retains a consensus "Moderate Buy" with an average target near $155.86, while the stock has tumbled to about $86.81 amid heavier selling and raised short interest.
• ServiceNow beat Q1 revenue and raised its subscription outlook citing stronger AI adoption, but the Armis acquisition and delayed large Middle East deals are expected to pressure margins and create near-term growth headwinds.

ServiceNow (NYSE:NOW - Get Free Report) had its price target decreased by investment analysts at Canaccord Genuity Group from $200.00 to $145.00 in a research note issued to investors on Thursday,MarketScreener reports. The brokerage currently has a "buy" rating on the information technology services provider's stock. Canaccord Genuity Group's price objective indicates a potential upside of 67.03% from the stock's previous close.

Several other equities analysts have also commented on NOW. DA Davidson reaffirmed a "buy" rating and set a $220.00 target price on shares of ServiceNow in a report on Thursday, January 29th. Deutsche Bank Aktiengesellschaft lowered their target price on ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a research note on Thursday, April 16th. HSBC dropped their target price on ServiceNow from $226.00 to $171.00 and set a "buy" rating for the company in a report on Thursday, April 16th. Evercore reaffirmed an "outperform" rating and issued a $175.00 price target (down from $225.00) on shares of ServiceNow in a research note on Thursday, January 29th. Finally, Wall Street Zen downgraded ServiceNow from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, ServiceNow presently has a consensus rating of "Moderate Buy" and a consensus target price of $155.86.

ServiceNow Price Performance

NYSE:NOW traded down $16.26 during midday trading on Thursday, hitting $86.81. The company had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. The company has a market capitalization of $89.95 billion, a PE ratio of 52.17, a P/E/G ratio of 1.68 and a beta of 1.01. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. ServiceNow has a 52-week low of $81.24 and a 52-week high of $211.48. The stock's fifty day moving average price is $105.55 and its 200-day moving average price is $138.83.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.97. The firm had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The company's revenue was up 22.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.04 earnings per share. As a group, research analysts expect that ServiceNow will post 2.49 earnings per share for the current year.

Insider Buying and Selling at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total value of $151,755.00. Following the completion of the sale, the director owned 46,430 shares of the company's stock, valued at $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the company's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the transaction, the insider owned 26,314 shares of the company's stock, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 16,237 shares of company stock valued at $1,697,162 in the last 90 days. Insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Brady Martz Wealth Solutions LLC grew its stake in ServiceNow by 1.3% in the third quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider's stock worth $775,000 after purchasing an additional 11 shares during the period. Magnus Financial Group LLC lifted its position in ServiceNow by 1.9% during the third quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider's stock valued at $542,000 after buying an additional 11 shares during the period. Avidian Wealth Enterprises LLC lifted its position in ServiceNow by 2.5% during the third quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider's stock valued at $417,000 after buying an additional 11 shares during the period. Traveka Wealth LLC boosted its holdings in shares of ServiceNow by 3.8% during the 3rd quarter. Traveka Wealth LLC now owns 330 shares of the information technology services provider's stock valued at $304,000 after buying an additional 12 shares in the last quarter. Finally, Regatta Capital Group LLC boosted its holdings in shares of ServiceNow by 1.9% during the 3rd quarter. Regatta Capital Group LLC now owns 633 shares of the information technology services provider's stock valued at $583,000 after buying an additional 12 shares in the last quarter. Hedge funds and other 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: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

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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