What Are Wall Street’s Forecasts for NOV after 3Q16 Earnings?



Wall Street’s forecasts for NOV

In this article, we’ll look at Wall Street analysts’ forecasts for National Oilwell Varco (NOV) shares following its 3Q16 earnings release.

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Consensus rating for National Oilwell Varco

Approximately 24% of analysts tracking National Oilwell Varco rated it a “buy” or some equivalent. Approximately 62% rated the company a “hold” or an equivalent. Only 14% of the analysts recommended a “sell.” National Oilwell Varco makes up 0.13% of the iShares Russell 1000 Value ETF (IWD).

In comparison, ~28% of analysts tracking Helmerich & Payne (HP) rated it a “buy” or some equivalent, and ~50% have rated it as a “hold.” Only 22% rated it a “sell.”

Analysts’ recommendations for NOV

When it comes to individual recommendations, Nomura gave National Oilwell Varco a target price of $29, following the 3Q16 earnings release. National Oilwell Varco currently trades near $36.6, implying -210% returns for the next 12 months. Cowen (COWN) gave NOV a one-year target price of $36, which implies -2% returns over the next one year.

Among the global investment banks, Credit Suisse (CS) gave National Oilwell Varco a one-year target price of $23, one of its lowest target prices. This target implies -37% returns at its current price.

Analysts’ target prices for NOV

Following the 3Q16 financial results, the highest target price for NOV is $39, and the lowest is $23. The median target price among sell-side analysts for NOV is $32.6. NOV is currently trading at ~$36.6, implying ~11% downside at its median price.

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