Susquehanna upgrades Dnow to Positive on MRC deal benefits

Susquehanna upgraded Dnow (DNOW) to Positive from Neutral with an unchanged price target of $16. The firm says that with the MRC Global acquisition now closed, Dnow is a “more formidable” energy and industrials solutions provider. Post acquisition, the company has a broader, more diversified suite of product offerings in its core end markets, the analyst tells investors in a research note. Susquehanna believes the acquisition also brings Dnow increased scale, opportunities for growth in energy evolution and industrial markets, and solid free cash flow for debt reduction and shareholder returns. It sees an attractive entry point at current share levels.