tech
Jim Cramer says he's not willing to bet against ServiceNow after an analyst sell call
KeyBanc established a $775 price target, which was right around where ServiceNow was trading Monday after dropping more than 11%.
TL;DR
- KeyBanc analyst Jackson Ader downgraded ServiceNow to an underweight sell from sector weight, setting a $775 price target.
- Ader cited the 'AI is eating software' narrative and potential seat-count pressure as headwinds for ServiceNow.
- This narrative has previously challenged companies like Salesforce, raising concerns about the impact of agentic AIs on the SaaS model.
- Jim Cramer called the sell call 'radical' and stated he would not bet against ServiceNow CEO Bill McDermott.