tech
December 17, 2025
ServiceNow shares were rocked this week. Now Bernstein says it’s the cheapest stock in software
Bernstein's $1,093 price target is approximately 40% above where shares of ServiceNow closed on Tuesday.
TL;DR
- Bernstein views ServiceNow's stock drop as a favorable entry point.
- The stock is described as the "cheapest" large cap software stock.
- Bernstein maintained an outperform rating with a price target suggesting a 40% upside.
- ServiceNow's stock has fallen 25% year-to-date and 8% this week following reports of acquisition talks.
- The analyst believes ServiceNow's valuation is attractive compared to peers, even those impacted by AI narratives.
- Bernstein does not anticipate organic growth guide downs and notes management sees accelerating demand.
- Recent large deals and acquisitions like Moveworks are seen as strategically sound and integrated with ServiceNow's platform.
- Acquired companies like Moveworks and potentially Armis are expected to integrate seamlessly and scale with ServiceNow's customer base.
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