Analysts Stay Bullish on ServiceNow (NOW) Amid Armis Acquisition Talks

ServiceNow, Inc. (NYSE:NOW) is one of the 14 Best Large Cap Stocks to Invest In Now. On December 16, Citizens reiterated its Market Outperform rating on ServiceNow, Inc. (NYSE:NOW) with a price target of $1,300.

This decision came after a Bloomberg report that said ServiceNow, Inc. (NYSE:NOW) is in discussions to acquire cybersecurity startup Armis for around $7 billion. This would make it the company’s biggest acquisition. On December 15, ServiceNow, Inc. (NYSE:NOW) just completed its acquisition of Moveworks for $2.85 billion, which is its largest purchase until now.

On December 17, Bernstein SocGen Group also reaffirmed its Outperform rating on ServiceNow, Inc. (NYSE:NOW) and kept the price target at $1,093. The stock price declined after the Armis acquisition news. However, Bernstein SocGen defended the possible deal and also highlighted that the market is undervaluing ServiceNow, Inc. (NYSE:NOW).

The research firm pointed out ServiceNow, Inc.’s (NYSE:NOW) price relative to its 3-year forward free cash flow, excluding stock-based compensation, against the growth rate. Bernstein SocGen noted that it trades below other large-cap application software companies hit by AI narratives.

Additionally, the research firm does not expect the company to cut its organic growth guidance. ServiceNow, Inc.’s (NYSE:NOW) management recently stressed rising demand and Bernstein SocGen’s recent channel checks also support this positive outlook.

ServiceNow, Inc. (NYSE:NOW) is an American software and technology company. It provides an AI platform that helps organizations digitize, automate, and manage workflows for enterprise operations.

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Disclosure: None. This article is originally published at Insider Monkey.