Mizuho Securities Downgrades ServiceNow (NOW) to Neutral

Mizuho Securities downgraded ServiceNow (NYSE: NOW) from Buy to Neutral with a price target of $65.00 (from $90.00), saying the stock is now in the penalty box following results and guidance.

Analyst Abhey Lamba commented, "We are downgrading ServiceNow to Neutral from Buy while cutting our PT to $65 from $90 as we find two misses in a year concerning. Additionally, some comments from the management team could indicate that there could be broader macro related implications for the space. We continue to view ServiceNow as one of the leading SaaS players but management will now have to prove its ability to sustain high levels of growth over the next few years as its recent performance has raised a few red flags. We move to the sidelines for now."

For an analyst ratings summary and ratings history on ServiceNow click here. For more ratings news on ServiceNow click here.

Shares of ServiceNow closed at $75.37 yesterday.

You May Also Be Interested In

• JPMorgan Downgrades Tata Technologies (TATATECH:IN) to Underweight
• Kepler Cheuvreux Upgrades BAE Systems (BA:LN) (BAESY) to Buy
• Citizens Starts MARA Holdings Inc (MARA) at Market Outperform