ServiceNow (NOW) PT Lowered to $1,100 at DA Davidson; 11% Stock Decline 'Overdone'

DA Davidson analyst Gil Luria lowered the price target on ServiceNow (NYSE: NOW) to $1,100.00 (from $1,250.00) while maintaining a Buy rating.

The analyst commented, "Previously, Bloomberg reported that NOW is in advanced talks to acquire the cybersecurity company Armis for $7B which would make it NOW's largest acquisition to yet. The acquisition is expensive from a valuation perspective at ~23x ARR, however we view Armis as an attractive target for NOW to bolster its growing suite of Security products. Shares fell ~11% today [Monday] in reaction to the news which we view as overdone. We reiterate our BUY rating."

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