Why ServiceNow Stock Is Gaining Today

Core Viewpoint - ServiceNow's stock is experiencing upward movement despite recent price target reductions from two investment firms, indicating investor confidence in the company's potential for growth [1][2][3]. Group 1: Analyst Updates - Oppenheimer has lowered its price target for ServiceNow from $1,200 to$970 per share, citing expectations for solid Q1 reports that may exceed Wall Street's forecasts, but also noting macroeconomic and geopolitical risks that could weaken demand in the enterprise software market [2]. - Bank of America has reduced its price target from $1,280 to$1,025 per share while maintaining an outperform rating, expecting year-over-year growth for remaining performance obligations (RPO) in Q1 to align with a previous target of 20.5% [3]. - Bank of America has also adjusted its full-year RPO growth target from 21% to 19.5% on a constant-currency basis due to a softer demand outlook [3]. Group 2: Market Potential - Oppenheimer's new price target suggests an upside potential of approximately 19% for ServiceNow's stock [4]. - Achieving Bank of America's revised target would imply a potential increase of around 26% from the current valuation level [4]. Group 3: Risks and Strengths - Macroeconomic and geopolitical risks may pose challenges for ServiceNow, potentially affecting its valuation and the broader market [5]. - Despite these risks, the company's strength in enterprise artificial intelligence (AI) software positions it as a potential long-term winner in the market [5].