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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InReflecting a cautious stance on technology valuations, DA Davidson has lowered its price target for ServiceNow from $190 to $170. Despite the reduction, the firm maintained a "Buy" rating on the stock, basing the new target on 30 times the projected free cash flow for 2026. This revision comes as the market anticipates the company's quarterly earnings release scheduled for July 22nd.
The analysts' decision mirrors broader pressure on valuation multiples among software peers, as investors seek to balance AI ambitions with actual cash returns. Per market data, the cloud software sector is facing valuation volatility compared to last year, with earnings reports from competitors like Salesforce and Adobe showing mixed market reactions to forward earnings multiples (per Reuters reports).
ServiceNow (NOW) stood at $104.01 at the close of July 16, 2026, significantly below previous target levels. Traders should watch the earnings results on July 22nd as a primary catalyst for the stock's direction, alongside upcoming US inflation data which may impact risk appetite in the growth and technology sectors.