Dnow price target raised to $19 from $17 at Stifel

Stifel analyst Nathan Jones raised the firm’s price target on Dnow (DNOW) to $19 from $17 and keeps a Buy rating on the shares after the company and MRC Global (MRC) announced a definitive merger agreement pursuant to which Dnow will acquire MRC Global in an all-stock transaction valued at approximately $1.5B, inclusive of MRC Global’s net debt. Dnow expects to generate $70M of annual cost synergies by year three following the anticipated close in Q4, with 25% EPS accretion in 2026, the analyst noted.