BUZZ- ServiceNow falls after BMO trims PT on potential reduction in federal contracts

Reuters2025-04-04
BUZZ- <a href="https://laohu8.com/S/NOW">ServiceNow</a> falls after BMO trims PT on potential reduction in federal contracts

** Brokerage BMO Capital Markets cuts PT on digital workflow company ServiceNow NOW.N to $990 from $1,185, rating remains unchanged at "outperform"

** Shares of NOW fall 4.3% to $739.08

** Brokerage flags uncertainties for co surrounding lesser contracts from the U.S. federal government as well as broader risks to global GDP growth from tariffs

** Brokerage believes along with IBM IBM.N and Accenture ACN.N, NOW has high exposure to the U.S. Federal government, which accounts for around 10% of its Annual Contract Value and subscription revenues

** Brokerage says co's Fed business has slowed down in early 2025, which could impact company's subscription revenue growth

** Forty one out of 47 brokerages rate the stock "buy" or higher, 5 rate "hold", 1 rate "strong sell"; their median PT is $1,145 as per data compiled by LSEG

** Including session's move, NOW stock down 30.3% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))

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