Truist Cuts ServiceNow Target to $175; Goldman Sets $216 Conviction Pick
On February 5 Truist cut ServiceNow’s price target to $175 from $240, citing terminal value pressures and prioritizing AI-driven strategic shifts over seat-based models. On February 2 Goldman Sachs placed ServiceNow on its US Conviction List with a $216 target, forecasting 20% annual organic growth through 2029.
1. Truist Lowers Price Target
On February 5 Truist reduced ServiceNow’s one-year price target to $175 from $240 while maintaining a Buy rating, attributing the revision to widening terminal value concerns in the infrastructure software sector.
2. Emphasis on AI and Deployment Models
Truist’s research note highlighted that vendors with seat-based licensing underperformed in 2025 and underscored the strategic importance of AI-driven use cases and a pivot toward consumption-based deployments.
3. Goldman Sachs Conviction List Inclusion
On February 2 Goldman Sachs added ServiceNow to its US Conviction List with a $216 target and projected roughly 20% annual organic revenue growth through 2029, citing robust expansion opportunities in new domains.
4. Implications for Valuation and Growth
The divergent price targets illustrate near-term valuation headwinds tied to terminal value concerns versus long-term upside from AI-powered workflow automation and a shift away from legacy seat-based models.