ServiceNow Shares Fall 5.2%, Analysts Cite Sub-20x EV/EBITDA
ServiceNow shares fell with the broader software sector, which slid 5.2% on February 10 as rising Treasury yields fueled valuation concerns. Analysts pointed to sub-20x forward EV/EBITDA multiples as attractive entry points and recommended accumulating on weakness.
1. Sector Slide and Macro Drivers
On February 10 the software sector tumbled 5.2%, pressured by a rise in 10-year Treasury yields that rekindled concerns over stretched growth valuations.
2. ServiceNow Performance
ServiceNow shares underperformed peers, declining roughly in line with the 5.2% sector average as investors rotated out of high-multiple names.
3. Analyst Valuation Commentary
Several firms noted forward EV/EBITDA multiples below 20x for ServiceNow, marking the lowest level in 12 months and signaling a potential buying opportunity.
4. Potential Rebound Catalysts
Analysts expect a stabilization in bond yields and easing macro uncertainty could trigger a rebound in software stocks, with ServiceNow poised to benefit from renewed buyer interest.