ServiceNow (NOW) PT Lowered to $140 at TD Cowen

TD Cowen analyst Derrick Wood lowered the price target on ServiceNow (NYSE: NOW) to $140.00 (from $185.00) while maintaining a Buy rating.

The analyst commented: "Constructive Checks vs. Low Expectations; Attractive Set-Up; NOW reports 1Q on 4/22. Checks remain constructive on overall growth trends, AI SKU adoption, large deal activity and broader platform attach. We think new pricing/packaging changes are a net positive. We expect a solid beat & raise and think shares are poised for a rebound given weak sector-driven sentiment and shares trading at ~17x EV/CY26E FCF for a 20% grower.

Shares are down -27% since the 4Q print and now trade at ~17x EV/CY26E FCF against 20% rev growth. For 1Q, we model 20% cRPO growth & expect ~1pt upside and room for a modest increase to FY26 rev guide. We think AI disruption concerns are overblown as we continue to hear positive feedback on NOW's AI positioning w/ no signs of disruption. We look for a clean qtr and see a compelling risk/reward into the print. Reiterate Buy. PT to $140 (~25x EV/CY26E FCF)."

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