NOW
New target, same thumbs-up
ServiceNow got a fresh haircut from BMO Capital Markets: the firm cut its price target to $120 from $170, but left its Outperform rating in place. Translation: the analyst isn’t bailing, but they are definitely asking the stock to stop acting like it has unlimited growth fuel.
What’s the market supposed to do with that?
A lower target can be a headwind for sentiment, especially when the stock has already been living in the “high expectations” neighborhood. But the important part here is the rating — BMO still thinks ServiceNow can beat the broader market. So this isn’t a classic downgrade; it’s more of a reality check with a polite smile.
The business still has some heat
The article also points out that ServiceNow’s revenue in the quarter rose 20.7% year over year, and analysts are still looking for $8.93 in earnings per share for the year. That’s the kind of backdrop that keeps the bull case alive, even when price targets get trimmed like a hedge fund haircut.
Don’t ignore the extra SEC wrinkle
There’s also a director stock sale disclosed in an SEC filing, with the insider ending up with 46,430 shares after the trade. That’s not necessarily a screaming alarm bell, but when insiders are trimming and analysts are trimming targets too, investors tend to pay attention.
Big picture: BMO didn’t turn bearish on ServiceNow — it just moved the goalposts. For you, that means the stock still has believers, but the easy upside story is getting a little less easy.