On Thursday, numerous stocks saw steeper-than-average drops when news items concerning them combined with generally gloomy investor sentiment.

One such victim was next-generation business software developer ServiceNow (NOW -5.01%), which saw its stock absorb a more than 5% blow to its share price that day. An analyst's price target reduction convinced some investors to hit the sell button. The S&P 500 index, meanwhile, slipped by 3.5% that session.

A bull makes a cut

Well before market open, Kash Rangan from influential investment bank Goldman Sachs reset his fair value assessment on ServiceNow. The new level is $1,050 per share, $150 below its previous mark; however, the analyst maintained his buy recommendation on the shares.

According to reports, Rangan's adjustment comes from his belief that ServiceNow might take a hit to its fundamentals in both its second quarter, and across the entirety of this year. After all, the company has substantial business with public-sector clients, which will be affected by the government's current push to downsize.

On the plus side, investors have been aggressively selling out of ServiceNow, making it a bargain on its current valuations, Rangan opined. The prognosticator also waxed bullish on the company's considerable efforts in integrating artificial intelligence (AI) functionalities to its offerings.

Down but still not out

We'll discover later this month if the analyst's positive outlook is justified. ServiceNow is scheduled to report its first-quarter results after market close on Wednesday, April 23.

I'm inclined to agree with Rangan's latest analysis on ServiceNow. I think the company has been somewhat unfairly punished for its public sector exposure, and at the moment it's an excellent candidate for a bounce-back given its notably improving fundamentals.