Stifel Trims Target Price on DNOW In (DNOW) to $16, Due to ERP Risk

DNOW Inc. (NYSE:DNOW) is 1 of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.

Sitel, connected February 23, trimmed its people terms connected DNOW by 11.1% to $16 (from $18), portion retaining its Buy proposal connected the stock. This people terms chopped comes a mates of days aft the institution released its Q4 2025 net connected February 20, which showed the accrued hazard from lingering ERP implementation issues.

David Cherechinsky, DNOW’s President and Chief Executive Officer, addressed this contented during the expert briefing. According to him, the challenges successful MRC Global’s US ERP implementation (which were communicated successful the 3rd quarter, pre-merger) were much persistent than initially anticipated. He described the contented arsenic follows:

“Design architecture is resulting successful inefficiencies for definite halfway processes, continuing antagonistic operating and fiscal impacts. Observed limitations crossed the strategy are that it is slow, impedes lawsuit service, requires much resources, increases information stock, and trouble successful processing orders.”

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The antagonistic revenue, nett margin, and currency travel interaction from the persistent issues (which affected ~40% of DNOW’s consolidated business) spilled implicit good into the 4th quarter. Despite the net miss, Sitel believes that the ERP issues volition “ultimately beryllium transitory successful nature.”

DNOW Inc. (NYSE:DNOW) is simply a holding institution engaged successful the organisation of vigor products for concern clients successful the United States, Canada, and internationally. The institution is based successful Houston, Texas, and was founded successful November 2013.

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