ServiceNow, Inc. (NYSE:NOW) is one of the 14 Best Large Cap Stocks to Invest In Now. On December 16, Citizens reiterated its Market Outperform rating on ServiceNow, Inc. (NYSE:NOW) with a price target of $1,300.
This decision came after a Bloomberg report that said ServiceNow, Inc. (NYSE:NOW) is in discussions to acquire cybersecurity startup Armis for around $7 billion. This would make it the company’s biggest acquisition. On December 15, ServiceNow, Inc. (NYSE:NOW) just completed its acquisition of Moveworks for $2.85 billion, which is its largest purchase until now.
On December 17, Bernstein SocGen Group also reaffirmed its Outperform rating on ServiceNow, Inc. (NYSE:NOW) and kept the price target at $1,093. The stock price declined after the Armis acquisition news. However, Bernstein SocGen defended the possible deal and also highlighted that the market is undervaluing ServiceNow, Inc. (NYSE:NOW).
The research firm pointed out ServiceNow, Inc.’s (NYSE:NOW) price relative to its 3-year forward free cash flow, excluding stock-based compensation, against the growth rate. Bernstein SocGen noted that it trades below other large-cap application software companies hit by AI narratives.
Additionally, the research firm does not expect the company to cut its organic growth guidance. ServiceNow, Inc.’s (NYSE:NOW) management recently stressed rising demand and Bernstein SocGen’s recent channel checks also support this positive outlook.
ServiceNow, Inc. (NYSE:NOW) is an American software and technology company. It provides an AI platform that helps organizations digitize, automate, and manage workflows for enterprise operations.
While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
