Stifel reiterates Buy rating on Now Inc stock, maintains $18 price target

Investing.com - Stifel has reiterated its Buy rating on Now Inc (NYSE:DNOW) stock, maintaining its price target of $18.00. The company, currently trading at $15.95 with a market capitalization of $1.67 billion, has demonstrated strong momentum with a 22.6% year-to-date return. According to InvestingPro analysis, DNOW maintains a "GREAT" financial health score of 3.08, suggesting solid fundamentals supporting Stifel’s positive outlook.

The firm’s decision follows meetings in Canada this week with Now Inc’s CFO Mark Johnson and IR Brad Wise, according to a note from Stifel.

Stifel expressed increased confidence in the value generation potential of Now Inc’s merger with MRC, noting the combination would "further high grade the business by driving diversified revenue and revenue synergies."

The research firm also highlighted "potential upside to the cost synergy target" and "flexible balance sheet optionality" resulting from the merger.

Stifel believes these factors create "a clear path to multiple expansion for DNOW shares," supporting its maintained Buy rating and $18 price target. This target aligns with the broader analyst consensus, as revealed by InvestingPro data, with analyst targets ranging between $16 and $18.

In other recent news, Now Inc reported its Q2 2025 earnings, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $0.25, surpassing the forecasted $0.22, which is a 13.64% surprise. Additionally, Now Inc’s revenue reached $798 million, outperforming the anticipated $609.6 million by a significant 30.91%. These results highlight the company’s strong performance in the recent quarter. Despite these positive earnings and revenue figures, the company’s stock experienced fluctuations in pre-market trading. Analysts had anticipated lower results, making the actual figures noteworthy for investors. The earnings call revealed these unexpected outcomes, drawing attention from various investment firms. As the company continues to navigate the financial landscape, these recent developments remain a focal point for stakeholders.

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