DNOW

DNOW · NYSE

$15.77−$0.44 (−2.71%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $16.21

DNOW analyst rating

BuyConsensus of 4 analysts over the last 12 months. 75% rate it a buy.

Strong buy0
Buy3
Hold1
Underperform0
Sell0

12-month price target · 7 analysts

Average $19.18 (+21.6% upside)

Low: $18.18
Now: $15.77
High: $19.95

Upgrades and downgrades

The latest rating actions, newest first

DNOW analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Freedom Broker	Sep 10, 2026	Downgrade	Buy → Hold	$18.00	66%
DA Davidson	Aug 10, 2026	Maintains	Buy	$17.00 → $19.00	65%
Susquehanna	Aug 7, 2026	Maintains	Positive	$16.00 → $19.00	56%
Freedom Broker	Jun 17, 2026	Initiates	Buy	$16.00	66%
DA Davidson	Jun 16, 2026	Initiates	Buy	$17.00	65%
Stifel	Feb 23, 2026	Maintains	Buy	$18.00 → $16.00	100%
Stifel	Nov 24, 2025	Maintains	Buy	$18.00	100%
Susquehanna	Nov 21, 2025	Upgrade	Neutral → Positive	$16.00	56%

The case for and against

Updated Oct 14, 2026

Bull case

Dnow is supported by a larger and more diversified platform after the MRC Global acquisition, which more than doubled annual sales and expanded exposure to gas utilities, downstream and industrial end markets, and digital/e-commerce channels. CY26 guidance calls for $5.0-$5.1 billion of sales, about 4.5% adjusted EBITDA margin, and $125-$200 million of operating cash flow, while 2Q26 sales of $1.307 billion and adjusted EPS of $0.12 topped expectations and leverage fell to 1.7x. The outlook remains positive because ERP-related disruption is easing, $30 million of annualized synergies support margin improvement, and the company sees a path to roughly $350 million of adjusted EBITDA in CY27 with potential further upside from stronger upstream activity and sticky gas utility demand.

Bear case

Dnow is burdened by a major ERP disruption in the U.S. portion of the MRC acquisition, which management and estimates suggest has already caused roughly $100 million to $150 million of lost sales in 3Q25 and could total about $400 million in the first year, undermining integration benefits. Despite MRC’s scale and ~$70 million in synergy savings, the company still faces exposure to softer upstream activity, volatile LNG and crude prices, tariff pass-through limits, and potential pullbacks in datacenter-driven demand that could pressure midstream and gas utility sales. Even with trailing 12-month sales of roughly $5.3 billion, the outlook remains fragile because further operational friction or weaker energy end markets could constrain CY26 EBITDA toward about $200 million and compress margins.

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