Dnow price target raised to $20 from $17 at Stifel

Stifel analyst Nathan Jones raised the firm’s price target on Dnow (DNOW) to $20 from $17 and keeps a Buy rating on the shares after the company reported “a strong finish to the year” and ended up generating “very strong” free cash flow. Despite end market headwinds in the energy sector, Dnow continues to high grade its portfolio and drive improvement in working capital turns, says the analyst, who sees sustainable cash generation “taking a material step up after further structural improvement in 2024.”