JPMorgan analyst Mark Murphy has revised the price target for ServiceNow (NOW, Financial), lowering it from $1,200 to $970. Despite this adjustment, the firm maintains its Overweight rating on the company's shares.
The decision comes after a noticeable decline in feedback from ServiceNow's partners, which also showed signs of a slowdown during the fourth quarter. This suggests a less favorable business environment may be emerging in the months and quarters ahead.
The analyst notes that the reduction in the price target is influenced by a downward re-rating of peer group multiples, indicating broader market trends affecting similar companies. Despite this cautious outlook, the Overweight rating reflects ongoing confidence in ServiceNow's overall potential.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 40 analysts, the average target price for ServiceNow Inc (NOW, Financial) is $1,037.79 with a high estimate of $1,426.00 and a low estimate of $716.00. The average target implies an upside of 37.28% from the current price of $755.99. More detailed estimate data can be found on the ServiceNow Inc (NOW) Forecast page.
Based on the consensus recommendation from 47 brokerage firms, ServiceNow Inc's (NOW, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ServiceNow Inc (NOW, Financial) in one year is $1056.38, suggesting a upside of 39.73% from the current price of $755.99. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ServiceNow Inc (NOW) Summary page.
