DA Davidson analyst Chris Dankert initiated coverage of Dnow with a Buy rating and $17 price target. The firm believes that the majority of ERP integration risk has been largely priced in, while elevated oil prices and secular tailwinds expected around natural gas infrastructure support material upside to earnings, the analyst tells investors in a research note. DNOW's healthy balance sheet also provides optionality to a more diversified business vs. history, the firm added.
