Core Viewpoint - ServiceNow, Inc. (NYSE:NOW) is recognized as one of the best long-term tech stocks to buy, despite recent price target reductions by analysts [1][3]. Group 1: Price Target Adjustments - BMO Capital has reduced its price target for ServiceNow from $230 to $175 while maintaining an "Outperform" rating, citing expectations for better-than-anticipated Q4 constant-currency growth in subscription revenues and current remaining performance obligations [1][2]. - Jefferies also lowered its price target for ServiceNow to $175 from $230, while keeping a "Buy" rating, indicating expectations for marginally better performance in constant currency cRPO and subscription revenue [3]. Group 2: Growth Expectations - BMO Capital anticipates that ServiceNow will guide in line with the current FY 2026 consensus organic subscription revenue growth rates on a constant-currency basis, which may help alleviate concerns regarding the sustainability of growth [2]. - The upcoming earnings report is expected to provide clarity on the durability of ServiceNow's growth trajectory [2]. Group 3: Market Context - The reduction in price targets is attributed to broader multiple compression in the software sector, indicating a challenging market environment for tech stocks [2].
ServiceNow (NOW): BMO Capital Expects Earnings Report to Alleviate tensions About Growth Durability