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Wall Street’s Forecasts for NOV after Its 1Q17 Earnings

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Analysts’ ratings for NOV

On April 26, after the company’s 1Q17 earnings were released, ~17% of the analysts tracking National Oilwell Varco (NOV) rated it a “buy” or some equivalent, while about 74% rated the company as a “hold.” Only 9% of the analysts recommended a “sell” or equivalent.

By comparison, approximately 50% of analysts tracking Oil States International (OIS) rated its stock as a “buy” or some equivalent, while approximately 50% rated it as a “hold.”

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Analysts’ rating changes for NOV

From January 26, 2017, to April 26, 2017, the percentage of analysts recommending a “buy” or some equivalent for NOV has increased from 14% to 17%. Analysts’ “hold” recommendations have also risen for NOV during the same period. One year ago, ~17% of the sell-side analysts recommended a “buy” for NOV.

National Oilwell Varco makes up 0.12% of the iShares Russell 1000 Value ETF (IWD).

Analysts’ target prices for NOV and peers

The Wall Street analysts’ mean target price for NOV on April 26 was ~$39.6. NOV is currently trading at ~$36, implying a ~9% upside at its current consensus mean price. One month ago, the analysts’ average target price for NOV was $39.9.

By comparison, the mean target price as surveyed among the sell-side analysts for Key Energy Services (KEG) was $31 on April 26. KEG is currently trading at ~$23.2, implying 33% upside at its average target price.

The mean target price as surveyed among the sell-side analysts for Tidewater (TDW) was $1.5 on April 26. TDW is currently trading at ~$0.91, implying 65% upside at its average target price.

The S&P 500 Index (SPY) (SPX-INDEX) has risen 14% in the past year, as compared to the similar rise in NOV’s stock price. The energy sector makes up 6.6% of SPX-INDEX.

To learn more about the oilfield equipment and services industry, check out Market Realist’s The Oilfield Equipment and Services Industry: A Primer.

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