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Will Renewed Analyst Optimism Shift the Narrative for DNOW (DNOW)?

Simply Wall St · 11/28 15:18
  • In recent days, Stifel reiterated its Buy rating for DNOW, and Susquehanna upgraded its view, reflecting renewed analyst confidence in the company’s prospects.
  • This wave of positive analyst sentiment was supported by improved survey results and increased expectations for DNOW's performance over the next year.
  • We'll explore how this broad analyst optimism, driven by better company outlook surveys, might influence DNOW's investment narrative moving forward.

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DNOW Investment Narrative Recap

To be a shareholder in DNOW, you generally need to believe in the continued expansion of energy infrastructure, positive sector cycles, and the company's ability to grow both organically and through acquisitions. While the latest analyst upgrades and positive sentiment reflect confidence in DNOW’s business outlook, this has not materially shifted the key short-term catalyst, which remains the successful integration of recent acquisitions, nor has it diminished the biggest current risk, ongoing variability in U.S. rig counts and energy spending. Of all DNOW’s recent announcements, the pending merger with MRC Global stands out as especially relevant. Analyst optimism appears grounded in the belief that this merger will accelerate growth by broadening market opportunities and providing operational synergies, although successful execution of the integration will be closely watched as the next major catalyst. Yet, in contrast to analyst enthusiasm, investors should be aware of persistent challenges related to weak U.S. rig activity and its potential impact on DNOW’s near-term...

Read the full narrative on DNOW (it's free!)

DNOW's outlook projects $2.5 billion in revenue and $61.4 million in earnings by 2027. This is based on a 2.5% annual revenue growth rate, but earnings are expected to decrease by $161.6 million from the current $223.0 million.

Uncover how DNOW's forecasts yield a $17.00 fair value, a 23% upside to its current price.

Exploring Other Perspectives

DNOW Earnings & Revenue Growth as at Nov 2025
DNOW Earnings & Revenue Growth as at Nov 2025

Simply Wall St Community fair value estimates for DNOW range widely from US$17 to US$60.89 based on 2 user forecasts. Growth expectations from motivated industry expansion are balanced by risks tied to fluctuations in rig and energy activity, so consider the diversity of these opinions as you form your own view.

Explore 2 other fair value estimates on DNOW - why the stock might be worth over 4x more than the current price!

Build Your Own DNOW Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your DNOW research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
  • Our free DNOW research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DNOW's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.