ServiceNow downgraded to Hold from Buy at Truist

Truist analyst Joel Fishbein downgraded ServiceNow to Hold from Buy with a price target of $420, down from $525, as part of a broader research note on Infrastructure and Security Software. The company’s ascendance over the course of the last decade has been remarkable from both a business and a stock perspective, but too many investors are buying the story for what they have done in the past versus what the company will do going forward, the analyst tells investors in a research note. The Street consensus model has ServiceNow exiting Q4 at 20% revenue growth, then accelerating to 22% growth for the full year 2023, and accelerating further in 2024, Fishbein adds, though the bullishness comes at a time of uncertain macro environment that is expected to deteriorate globally.