Nvidia’s results, Indian tariffs, French markets - what’s moving markets
On Friday, Stifel analysts maintained a Buy rating on Now Inc (NYSE:DNOW) shares, with a steadfast price target of $20.00, aligning with InvestingPro data showing analyst targets ranging from $16 to $20. The stock has demonstrated strong momentum with a 23% gain year-to-date. Following investor meetings in Boston and New York earlier this week, the firm expressed confidence in the company’s robust demand and potential benefits from tariffs. Stifel highlighted the strong balance sheet of Now Inc, which they believe offers the company flexibility for value creation through inorganic means. This assessment is supported by InvestingPro data showing a healthy current ratio of 2.33 and minimal leverage with a debt-to-equity ratio of just 0.06.
The meetings, attended by Now Inc CEO David Cherechinsky and VP of Investor Relations Brad Wise (LON:WISEa), provided Stifel analysts with insights into the company’s current market position and future prospects. Stifel’s endorsement of the company’s financial health and strategic opportunities reflects a positive outlook on Now Inc’s potential to leverage its assets in the market.
Stifel’s commentary underscored the advantages that Now Inc could harness from the current tariff environment. The firm’s analysts are of the view that these economic measures may work in favor of Now Inc, positioning it to benefit from the industry dynamics.
The firm’s analysts also drew attention to the company’s strong balance sheet, which they believe could be instrumental in pursuing inorganic growth strategies. This financial stability is seen as a cornerstone for Now Inc to potentially engage in acquisitions or partnerships that could enhance its market presence and drive shareholder value.
In summary, Stifel’s reiteration of a Buy rating with a $20.00 price target on Now Inc stock follows a series of investor meetings that reinforced the analysts’ confidence in the company’s solid demand, potential tariff benefits, and financial flexibility for inorganic growth. The company’s leadership team shared insights that resonated with Stifel’s positive stance on Now Inc’s market opportunities. For deeper insights into Now Inc’s financial health and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of over 30 key financial metrics and exclusive ProTips.
In other recent news, Now Inc reported robust financial results for the fourth quarter of 2024, surpassing analysts’ expectations with an earnings per share (EPS) of $0.25, compared to the forecasted $0.15. The company’s revenue also exceeded projections, reaching $571 million against an anticipated $554.33 million. This performance marks a significant earnings beat, reflecting effective cost management and strategic expansions. Furthermore, Now Inc announced a new $160 million share repurchase authorization, doubling its previous program, which underscores confidence in its financial health. Stifel analysts raised Now Inc’s stock price target from $17 to $20, maintaining a Buy rating, citing the company’s strong finish to the year and its above-consensus guidance for 2025. The firm’s analysts highlighted Now Inc’s strategic efforts to improve portfolio quality and cash generation capabilities. Now Inc ended the year with $256 million in cash and no debt, emphasizing its strong financial position. These developments suggest that Now Inc is well-positioned for continued growth, offering promising opportunities for investors.
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