ServiceNow (NYSE:NOW) Price Target Lowered to $171.00 at HSBC

Key Points

• HSBC cut its price target on ServiceNow to $171 from $226 but kept a "buy" rating, a level that implies about a 74% upside from the stock's recent ~$98 price.
• Multiple analysts also trimmed targets this week (TD Cowen to $140, Goldman to $188, Citigroup to $177, BMO to $120), dragging the consensus target to about $173.46 and contributing to the stock's ~40%+ YTD decline.
• Fundamentals show a modest Q1 beat—revenue up 20.7% YoY and EPS above estimates—while institutional ownership is high (~87.2%) and insiders have recently sold small stakes.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective dropped by equities researchers at HSBC from $226.00 to $171.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. The brokerage currently has a "buy" rating on the information technology services provider's stock. HSBC's price objective would suggest a potential upside of 74.21% from the company's current price.

NOW has been the subject of a number of other reports. TD Cowen dropped their price target on shares of ServiceNow from $185.00 to $140.00 and set a "buy" rating for the company in a research report on Thursday. Weiss Ratings reiterated a "hold (c)" rating on shares of ServiceNow in a research report on Thursday, January 22nd. The Goldman Sachs Group cut their price objective on shares of ServiceNow from $216.00 to $188.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. Deutsche Bank Aktiengesellschaft set a $180.00 target price on shares of ServiceNow in a research note on Thursday, January 29th. Finally, Citigroup reiterated a "buy" rating and issued a $177.00 price target (down from $237.00) on shares of ServiceNow in a research report on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, ServiceNow currently has an average rating of "Moderate Buy" and an average price target of $173.46.

ServiceNow Price Performance

Shares of NYSE NOW opened at $98.16 on Thursday. The company has a 50 day simple moving average of $105.93 and a two-hundred day simple moving average of $141.78. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The company has a market capitalization of $101.70 billion, a price-to-earnings ratio of 58.75, a P/E/G ratio of 1.47 and a beta of 1.01. ServiceNow has a fifty-two week low of $81.24 and a fifty-two week high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.03. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The company had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. During the same quarter last year, the firm earned $0.73 earnings per share. The firm's quarterly revenue was up 20.7% compared to the same quarter last year. Analysts expect that ServiceNow will post 8.93 EPS for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 9,641 shares of ServiceNow stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total transaction of $1,021,271.13. Following the sale, the insider owned 11,757 shares of the company's stock, valued at $1,245,419.01. The trade was a 45.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, 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 disclosure for this sale is available in the SEC filing. Insiders sold 16,237 shares of company stock valued at $1,697,162 over the last quarter. 0.34% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NOW. Vanguard Group Inc. lifted its holdings in shares of ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares during the last quarter. State Street Corp grew its position in ServiceNow by 406.6% in the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of ServiceNow by 371.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock worth $4,962,692,000 after purchasing an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after acquiring an additional 18,854,775 shares in the last quarter. Finally, Morgan Stanley raised its position in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock valued at $3,482,543,000 after purchasing an additional 17,514,679 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company's stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Jim Cramer flagged ServiceNow as able to go higher, noting an expanded buyback and CEO stock purchases that can support the share price and investor sentiment. Jim Cramer on ServiceNow: “It Can Go Higher”
• Positive Sentiment: Market “risk-on” flows tied to reports of potential peace negotiations lifted growth/software names, helping ServiceNow recover as investors rotate into high‑margin, AI-exposed enterprise software. Why Is ServiceNow (NOW) Stock Rocketing Higher Today
• Positive Sentiment: Company expansion and AI execution: ServiceNow is adding data centers and expanding its AI Workflow Hub in Brazil, signaling international AI adoption and revenue expansion opportunities. ServiceNow Expands AI Workflow Hub In Brazil
• Positive Sentiment: Analysts and media point to early signs of AI-driven demand and a modest Q1 beat potential, which supports near‑term upside into earnings. ServiceNow Seen Delivering Modest Q1 Beat
• Neutral Sentiment: Industry commentary compares ServiceNow to peers for short candidates but generally favors Shopify as the more exposed name — this piece is more about relative valuation than an immediate catalyst for NOW. ServiceNow vs Shopify: Which Is the Better Short Candidate Right Now?
• Neutral Sentiment: Partner and integration news (TrustCloud integration, SAM partner recognition) and analyst coverage naming ServiceNow among top software names add to the positive narrative but are incremental vs. earnings and macro drivers. TrustCloud Brings AI-Driven Cyber Risk Automation Directly Into ServiceNow
• Negative Sentiment: Multiple analysts trimmed price targets this morning (TD Cowen to $140, Robert W. Baird to $125, BMO to $120 and others), which increases headline volatility and has been a key driver of the stock’s larger YTD decline; several stories note the stock has fallen sharply this year. Benzinga: Analyst Price Target Cuts MarketScreener: BMO Lowers Target
• Negative Sentiment: Coverage highlighting the stock’s roughly 40%+ YTD drop and articles asking whether the selloff is a buying opportunity keep downside pressure by emphasizing execution risk and high prior multiples. Blockonomi: NOW Stock Plunges 43% — Time to Buy?

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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