ServiceNow initiated with a Buy at HSBC

HSBC initiated coverage of ServiceNow with a Buy rating and $704 price target. The firm initiated coverage on 10 U.S. technology companies. The U.S. technology sector is experiencing tailwinds that will bolster operating performances for some companies, but not all, the analyst tells investors in a research note. The firm sees promise from artificial intelligence, but says the timing remains uncertain, while demand for cloud and digital transformation “is still strong.” HSBC prefers companies that are “at critical stages of their operations” with leveraged operating models poised to deliver better operating performances than peers given strong demand.