ServiceNow: Accretive Armis Acquisition Strengthens Security & OT Growth, Supporting Buy Rating

Raymond James analyst Adam Tindle has maintained their bullish stance on NOW stock, giving a Buy rating today.

Adam Tindle has given his Buy rating due to a combination of factors tied to ServiceNow’s strategic expansion and disciplined deal structure. He views the Armis acquisition favorably because it is being funded with a mix of cash and debt rather than equity, reducing dilution risk while still enabling the company to pursue a large, high-impact transaction. Although he is generally cautious on sizable M&A, he notes that management has indicated no need for further major security-related acquisitions, which helps ease concerns about an open-ended acquisition spree and potential valuation pressure.

Tindle also sees the deal as highly complementary to ServiceNow’s existing strengths and growth priorities, particularly in security and operational technology (OT). By adding Armis’s exposure management and device-security capabilities across IT, IoT, and OT, ServiceNow can deepen its presence in industrial and critical-infrastructure environments and enhance solutions like OT Asset Management. He highlights that ServiceNow’s security portfolio has already surpassed $1 billion in ACV ahead of prior expectations, and the long-standing integration between ServiceNow and Armis since 2020 has effectively validated customer demand and product fit. In his view, these elements together support a constructive outlook on growth and justify maintaining a Buy rating on the shares.

In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $255.00 price target.