Susquehanna Upgrades DNOW Following MRC Acquisition, Signaling New Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 21 2025
0mins
Source: SeekingAlpha
Upgrade and Price Target: DNOW shares rose 8.3% after Susquehanna upgraded them to Positive from Neutral, setting a price target of $16, citing the company's enhanced position following the MRC Global acquisition.
Growth Opportunities: The acquisition is expected to provide increased scale, growth potential in energy and industrial markets, and a clean balance sheet for further mergers and acquisitions, alongside solid free cash flow for debt reduction and shareholder returns.
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Analyst Views on DNOW
Wall Street analysts forecast DNOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DNOW is 17.67 USD with a low forecast of 16.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 15.070
Low
16.00
Averages
17.67
High
19.00
Current: 15.070
Low
16.00
Averages
17.67
High
19.00
About DNOW
DNOW Inc. is a premier energy and industrial solutions provider. It supplies energy and industrial products and packaged, engineered process and production equipment. The Company is a distributor of pipe, valves, fittings (PVF), pumps and fabricated equipment. Its products and services include air compressors and blowers; artificial lift; drilling and completions; electrical; industrial and facilities supplies; instrumentation and measurement; paint and coatings; PVF; power generation and transmission; process and production equipment; pumps and packages; safety and PPE, and tools and welding equipment. Its DigitalNOW platform and supply chain services address intricate operational challenges, bolstered with support from procurement and inventory management to field services. It serves a range of markets, including upstream, midstream and downstream oil and gas, chemical processing, mining, municipal water, manufacturing, engineering, energy evolution and renewables.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DNOW and Three Other Stocks Show Rising Cash Flows
- Cash Flow Growth: DNOW is projected to have a 20.5% earnings growth rate for 2026, with a consensus estimate revised upward by 8.7% over the past 30 days, indicating effective cash flow management that enhances its market competitiveness.
- Earnings Estimate Improvement: Pursuit Attractions' earnings per share estimates for 2025 and 2026 have increased by 1.6% and 10.3%, respectively, reflecting the company's ongoing efforts to attract customers and enhance service quality, which supports its robust growth in the tourism and hospitality sector.
- Oil and Gas Industry Outlook: Riley Exploration Permian's earnings per share estimates for 2025 and 2026 have been raised by 5.0% and 14.2%, respectively, showcasing the success of its drilling activities in Texas and New Mexico, thereby strengthening its position in the oil and gas market.
- Technological Innovation: RF Industries' fiscal 2026 earnings estimate was revised up by 22.9% in the past week, indicating strong demand in the telecom and data communications markets, further solidifying its leadership in global connectivity solutions.
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DNOW Institutional Holdings Exceed 60%, Significantly Influencing Share Price
- Institutional Ownership Analysis: DNOW's institutional investors hold over 60% of the shares, indicating significant influence over the company's stock price and decision-making, reflecting professional investors' confidence in the firm.
- Major Shareholder Structure: The largest shareholder is BlackRock with a 9.5% stake, followed by Vanguard at 6.3%, highlighting the importance of large institutions in DNOW, which may also introduce greater market volatility risks.
- Insider Ownership Situation: Company insiders own shares worth approximately $29 million, indicating alignment of interests between management and shareholders, which can enhance market trust in the company.
- Public Ownership Proportion: The general public holds 39% of the shares, which, while not directly influencing decisions, still exerts a degree of sway over company operations, showcasing a broad investor base.
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