William Blair analyst Arjun Bhatia has reiterated their bullish stance on NOW stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors surrounding ServiceNow’s strategic moves in the cybersecurity and operational technology sectors. The potential acquisition of Armis, a company specializing in OT/IoT security, is seen as a significant step for ServiceNow, allowing it to enhance its capabilities in managing and securing a wide range of assets, including those in critical infrastructure sectors like manufacturing, healthcare, and telecommunications. This acquisition, valued at up to $7 billion, would be the largest in ServiceNow’s history, indicating a strong commitment to expanding its influence in these strategic areas.
Furthermore, the acquisition aligns with ServiceNow’s goal of integrating IT and OT data into a unified platform, enhancing its Configuration Management Database (CMDB). By incorporating Armis’s expertise, ServiceNow is expected to accelerate its OT strategy, making its CMDB more comprehensive and relevant. This move is anticipated to not only bolster ServiceNow’s security offerings but also have broader implications for its operational data management, thereby strengthening its market position and justifying the Buy rating.
Bhatia covers the Technology sector, focusing on stocks such as InterDigital, Zeta Global Holdings Corp, and Klaviyo, Inc. Class A. According to TipRanks, Bhatia has an average return of 0.2% and a 43.15% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $1,315.00 price target.