Stifel analyst Adam Farley reiterated a Buy rating and $16.00 price target on Now Inc (NYSE: DNOW).

The analyst commented, "We maintain our Buy rating on DNOW shares with a $16 target price. We were fortunate to host CEO David Cherechinsky and Investor Relations Brad Wise for investor meetings on the West Coast this week. We come away from meetings with increased confidence that 1Q26 represented the bottom of the ERP headwinds facing MRC’s U.S. business with a clearer path to continued recovery. We believe investor concerns around the duration and magnitude of ERP headwinds has been a significant overhang on DNOW shares, and we would expect continued execution on ERP optimization driving improving revenue and earnings. Return to normalcy in the business would provide significant earnings growth potential and an idiosyncratic value story that is being under-appreciated by investors, in our view."

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Shares of Now Inc closed at $13.45 yesterday.