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National Oilwell Varco: Analysts’ Forecasts before Its Earnings

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Analysts’ forecasts for National Oilwell Varco

Now, we’ll discuss Wall Street analysts’ forecasts for National Oilwell Varco (NOV) before its second-quarter earnings.

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Analysts’ rating for National Oilwell Varco

As of July 16, ~14% of the Wall Street analysts tracking National Oilwell Varco rated it as a “buy” or some equivalent. Approximately 75% of the analysts rated the company as a “hold,” while 11% have rated it as a “sell” or some equivalent.

In comparison, 69% of the sell-side analysts tracking C&J Energy Services (CJ) rated it as a “buy” or some equivalent as of July 16. Approximately 31% of the analysts rated CJ Energy Services as a “hold” as of July 16.

Rating changes for National Oilwell Varco

On April 16–July 16, the percentage of analysts recommending a “buy” or some equivalent for National Oilwell Varco decreased from 22% to 14%. Analysts’ “hold” recommendations increased during this period. A year ago, ~20% of the sell-side analysts recommended a “buy” for National Oilwell Varco.

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Analysts’ target prices for National Oilwell Varco

As of July 16, sell-side analysts’ mean target price for National Oilwell Varco was $37.7. Currently, National Oilwell Varco is trading at ~$43.9, which implies ~14% downside at its current price. A month ago, analysts’ mean target price for National Oilwell Varco was $37.3.

Target prices for National Oilwell Varco’s peers

The mean target price, surveyed among sell-side analysts, for Basic Energy Services (BAS) was $21.3 as of July 16. Currently, Basic Energy Services is trading at ~$11.3, which implies nearly 88% potential returns at the current price. The mean target price, surveyed among sell-side analysts, for Tenaris S.A. (TS) was $41.0 as of July 16. Currently, Tenaris S.A. is trading at ~$37.2, which implies 10% upside at the current price.

Learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer.

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