Oppenheimer Cuts ServiceNow (NOW) Price Target, Keeps Outperform Rating

ServiceNow, Inc. (NYSE:NOW) is one of the 10 Unrivaled Stocks of the Next 5 Years. On April 14, Oppenheimer reduced its price target on ServiceNow, Inc. (NYSE:NOW) from $175 to $130 and kept its Outperform rating on the stock.

The firm cut its price target on the stock because of lower valuation multiples across the software sector. Oppenheimer noted that ServiceNow, Inc.’s (NYSE:NOW)  first-quarter earnings are unlikely to eliminate concerns about AI-related disruption.

The research firm noted that a more positive trend in post-earnings estimates could help support the stock, especially since expectations are already low following a sharp decline year-to-date. ServiceNow, Inc. (NYSE:NOW) is scheduled to report Q1 earnings on April 22, which investors will be looking at closely.

Oppenheimer expects the company to report strong AI metrics, higher margins driven by internal AI efficiencies and reduced hiring, and higher capital returns. However, the research firm also noted that organic growth in areas like current remaining performance obligations (CRPO), subscription revenue, and guidance could be impacted because of soft Federal Government activity.

ServiceNow, Inc. (NYSE:NOW) is an American software and technology company. It provides an AI platform that helps organizations digitize, automate, and manage workflows for enterprise operations.

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