Investors may be disappointed with ServiceNow’s (NOW) plan to acquire Armis for $7 billion, according to Oppenheimer analyst Brian Schwartz. The deal raises concerns about the company’s ability to sustain fast organic subscription revenue growth and may affect stock prices until management proves out potential synergies.
However, Schwartz still sees the acquisition as strategic and value-added, saying it would support ServiceNow’s leadership in enterprise IT. He has an Outperform rating and $1,150 price target on the stock.
Source: https://www.tipranks.com/news/the-fly/investors-likely-disappointed-servicenow-considering-big-deal-says-oppenheimer-thefly