UBS quietly resets outlook on AI software giant
UBS downgrades ServiceNow amid AI market shifts
UBS has downgraded ServiceNow from Buy to Neutral, slashing its price target from $170 to $100, as concerns grow over tightening budgets for non-AI software. This shift has led to a 7.58% drop in ServiceNow's stock, closing at $83, reflecting investor anxiety about the company's ability to maintain its competitive edge in the evolving AI landscape.
Key Takeaways
- 1.
UBS downgraded ServiceNow to Neutral, cutting its price target from $170 to $100.
- 2.
ServiceNow's subscription revenue growth is projected at 18.5% to 19% for 2026.
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The company's remaining performance obligation growth estimate was lowered to 16%, down from 20%.
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