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Investing.com - Loop Capital downgraded MRC Global (NYSE:MRC) from Buy to Hold on Monday, setting a price target of $16.00 as the company’s acquisition by DNOW approaches completion. MRC Global, currently trading at $14.47, shows a relatively high P/E ratio of 38.6x. InvestingPro analysis reveals several key insights about the company’s valuation and market position, with 7 additional exclusive tips available for subscribers.
The research firm cited "limited near-term upside" for MRC Global shares, which are currently trading within approximately 10% of Loop Capital’s target price and modestly above the $14 per share implied acquisition price announced earlier.
Loop Capital noted the deal is expected to close during the fourth quarter of 2025 and has officially passed the statutory waiting period, marking significant progress toward completion.
Despite the downgrade, Loop Capital expressed continued confidence in MRC Global’s business value, describing the merger as "a substantial win for the combined entity" with significant potential to exceed initial synergy goals, while creating a more diversified customer and market base with robust free cash flow.
The firm also highlighted potential headline risk following recent sanctions of Rosneft and Lukoil by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), noting that any reversal of these sanctions could create downward pressure on oil prices and stocks with oilfield service exposure.
In other recent news, DNOW Inc. has announced the leadership team that will guide the company following its pending $1.5 billion all-stock merger with MRC Global Inc. The leadership will include executives from both companies, with DNOW’s President and CEO, David Cherechinsky, and CFO, Mark Johnson, continuing in their roles. Additionally, the statutory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for the merger between MRC Global and DNOW has expired. This expiration is a key step in progressing the merger, which involves the integration of Buck Merger Sub, Inc., and Stag Merger Sub, LLC, both subsidiaries of DNOW. The merger agreement outlines that Buck Merger Sub will merge with MRC Global, with MRC Global surviving the merger. Following this, MRC Global will merge with Stag Merger Sub, LLC, becoming a wholly-owned subsidiary of DNOW. These developments mark significant progress in the merger process, which was initially announced by MRC Global in June 2025.
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