ServiceNow, Inc. (NYSE:NOW) shares are trading lower Monday after Guggenheim analyst John Difucci downgraded the stock from Neutral to Sell and announced a $640 price target. 

The Details

According to a MarketWatch report, the Guggenheim analyst sees an "unfavorable" setup for ServiceNow through the second half of 2024 and does not see growth in ServiceNow’s subscription business. Difucci said the company will have to lower top-line subscription guidance for 2024 and the company's 2025 estimates are too high. 

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On the other hand, Needham analyst Mike Cikos reiterated ServiceNow with a Buy and a $900 price target on Monday. The analyst noted ServiceNow surpassed quarterly cRPO and Subscription Revenue guidance in the past five quarters. 

ServiceNow shares moved lower on above-average trading volume Monday, though the stock remains up nearly 10% over the past month. 

According to data from Benzinga Pro, ServiceNow shares are trading above the stock’s 50-day moving average of $731.39 and below its 52-week high of $815.32.

ServiceNow Stock Prediction 2024

When buying a stock for a longer time horizon, investors need to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

ServiceNow’s revenue has grown at an average rate of 26.41% annually over the past five years. The average 1-year price target from analysts is $867.80, representing an expected 13.68% upside in 2025.

While past performance is not a guarantee for future results, investors should also look at a stock's historical performance when compared to a benchmark index and the company's peers.

Shares of ServiceNow have seen an annualized return of 12.9%, outperforming the S&P500 index by 4.08%. This compares to 29.74% growth in the overall Information Technology sector. ServiceNow has a beta of 1.31.

NOW Price Action: According to Benzinga Pro, ServiceNow shares closed Monday’s session down 5% at $766.20.

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