ServiceNow price target lowered to $1,100 from $1,250 at DA Davidson

DA Davidson lowered the firm’s price target on ServiceNow (NOW) to $1,100 from $1,250 and keeps a Buy rating on the shares. The company’s expected $7B acquisition of Armis would be accretive to 2026 growth by at least 50bps but dilutive to free cash flow margins by about 200bps, the analyst tells investors in a research note. While the deal is not yet confirmed, given the size of the acquisition, the firm expects a 50/50 combination of cash and stock agreement similar to ServiceNow’s acquisition of Movework’s, DA Davidson added.