ServiceNow downgraded at Morgan Stanley on balanced risk/reward

As previously reported, Morgan Stanley downgraded ServiceNow (NOW) to Equal Weight from Overweight with a price target of $960, up from $900. Partner checks suggest stable demand, driven by healthy cross-sell activity and early Pro Plus excitement, and execution remains “encouraging,” the analyst tells investors. However, a lack of meaningful valuation upside, elevated expectations due to Pro Plus adoption, and recent leadership departures “balance the risk/reward,” the analyst contends.