ServiceNow price target lowered to $970 from $1,200 at Oppenheimer

Oppenheimer lowered the firm’s price target on ServiceNow (NOW) to $970 from $1,200 and keeps an Outperform rating on the shares. ServiceNow’s first-quarter results appear solid, and the firm detected good cost discipline suggesting potential upside to Q1 consensus estimates. However, the rising macro and geopolitical uncertainties are expected to slow down purchasing behavior across enterprise IT, the Federal business, and have an adverse impact to ServiceNow’s guidance, in Oppenheimer’s view. Nevertheless, the Q1 earnings update will likely reaffirm strong generative AI adoption, margins, and ServiceNow as a good fundamentals compounder.