DA Davidson Rates DNOW buy, $17 Price Target

On June 16, 2026, DA Davidson analyst Chris Dankert reaffirmed a Buy rating for DNOW Inc. (DNOW), keeping a $17.00 price target for the industrial distributor. The move signals continued confidence in the Houston-based company even as the stock trades in the lower half of its yearly range. The $17.00 target sits well above the $13.71 price seen on Wednesday, suggesting the firm believes there is room for the stock to climb.

Several other firms have updated their views on the company recently. On September 10, 2026, Freedom Broker lowered its stance from a previous rating to Hold, though it set a higher price target of $18.00. Earlier in the summer, DA Davidson had actually boosted its target to $19.00 on August 10, 2026, while maintaining its Buy rating. Susquehanna also showed optimism on August 7, 2026, keeping a Positive rating and raising its target to $19.00 from $16.00. Currently, four analysts cover the stock with a consensus target price of $18.75.

DNOW shares have experienced some pressure lately, with the price of $13.71 sitting just below the 200-day moving average of $13.79. This moving average is a common tool used to track long-term price trends. The stock has traded between $10.94 and $17.26 over the last year. With a forward P/E ratio of 18.9, the market is pricing the stock based on expected future earnings rather than its most recent results.

Recent Earnings

In its latest financial reporting, DNOW Inc. posted revenue of $4.08 billion, which represented a growth rate of 1.08%. Despite the steady sales, the company isn't profitable right now, reporting a net margin of negative 4.6% and a return on equity of negative 11.6%. Because it lost money, it does not have a meaningful P/E ratio for the trailing period. Investors are looking toward the next scheduled earnings update on November 4, 2026, to see if the distributor can flip those margins back into positive territory.

Industrial Distribution Focus

DNOW Inc. is a major distributor of energy and industrial supplies. It provides everything from pipes and valves to complex pumping systems and safety gear for the oil and gas industry. The company also helps its customers manage their supply chains and inventory. As the energy sector shifts, DNOW has branched out into renewable gas and water treatment facilities, making its business more diversified than its previous focus on traditional oilfields.

What to Watch

The analyst's $17.00 target serves as a benchmark for the stock's recovery, but much will depend on the upcoming November 4 earnings report. While the Buy rating from DA Davidson is a positive sign for the company's outlook, the recent downgrade to Hold by Freedom Broker suggests some caution remains in the market. As with all analyst reports, these targets are backward-looking opinions based on data available at the time of the filing.