Why NOW Stock Is Trading Higher Today

NOW Inc (NYSE: DNOW) is trading higher Friday after Stifel upgraded the stock from Hold to Buy and announced a $12 price target.

Oil and gas customer spending likely reached a bottom in the first quarter and should begin to accelerate, Stifel analyst Nathan Jones said. 

Jones noted that management at NOW is committed to a structural lower operating expense profile that should drive higher profitability. Furthermore, the Stifel analyst sees inflation as a tailwind for gross margins.

NOW is an independent global distributor of oil and gas equipment and services. The company is scheduled to report its second-quarter financial results Aug. 4.

Price Action: NOW has traded as high as $11.98 and as low as $4.03 over a 52-week period.

At last check Friday, the stock was up 6.05% at $9.48.