Goldman Sachs downgraded ServiceNow (NOW.US) from "Neutral" to "Sell" with a target price of $640.
According to the Smart Finance app, Goldman Sachs has downgraded ServiceNow (NOW.US) from "Neutral" to "Sell" with a target price of $640. Goldman Sachs stated that ServiceNow had a good second quarter in 2024, but future risks do not match the valuation.
ServiceNow will announce its financial report on July 24th. According to Goldman Sachs analysts, the company had good performance in the second quarter of 2024, but there are significant risks in the second half of the year due to unsubscribed expectations.
Goldman Sachs analysts added that ServiceNow appears to expect growth in its artificial intelligence business in the second half of this year, but their field survey shows that this may not be achieved until 2025.
Analysts said that the survey of partners in the second quarter was generally positive, but not as positive as usual.
Analysts added that several partners expressed concerns about the second half of this year, especially since the monetization of artificial intelligence has not been achieved on a large scale and is unlikely to be realized this year as management has implied.
According to TipRanks data, overall, Wall Street analysts are still bullish on ServiceNow, with a consensus rating of "Strong Buy" and an average target price of $856.93, which means there is still 6% upside potential.
As of press time, ServiceNow fell 4.52% to $770.00. The stock has risen 14% this year.