Canaccord Genuity Reiterates a 'Buy' on National-Oilwell Varco (NOV); Rig Tech Margins Drive Beat
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Price: $20.42 +0.74%
Rating Summary:
20 Buy, 23 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
20 Buy, 23 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity reiterates a 'Buy' on National-Oilwell Varco (NYSE: NOV) price target raised from $96 to $100.
Canaccord analyst, John Tasdemir, says, "NOV reported normalized Q3 EPS of $1.14 versus $0.99/$1.01 CG/Street. The beat was driven by better than expected Rig Tech margins of 27% (24% est.) due in part to cost savings in riser manufacturing. Net additions during the quarter also beat with $2.96B versus our forecasted $2.4B, resulting in ending backlog of $7.74B and 2.1x book-to-bill. Over the last two quarters, $5.2B in net additions clearly shows that the ramp-up in floater/jack-up refleeting is increasingly translating into orders for National Oilwell. Going into H2/11 and 2012, we believe that NOV will be firing on all cylinders, with oilservice companies continuing to retool and as drilling activity ramps up globally. Our 2011 and 2012 EPS estimates increase by $0.30 and $0.55, to $4.40 and $5.70 respectively."
For more ratings news on National-Oilwell Varco click here and for the rating history of National-Oilwell Varco click here.
Shares of National-Oilwell Varco closed at $81.96 yesterday.
Canaccord analyst, John Tasdemir, says, "NOV reported normalized Q3 EPS of $1.14 versus $0.99/$1.01 CG/Street. The beat was driven by better than expected Rig Tech margins of 27% (24% est.) due in part to cost savings in riser manufacturing. Net additions during the quarter also beat with $2.96B versus our forecasted $2.4B, resulting in ending backlog of $7.74B and 2.1x book-to-bill. Over the last two quarters, $5.2B in net additions clearly shows that the ramp-up in floater/jack-up refleeting is increasingly translating into orders for National Oilwell. Going into H2/11 and 2012, we believe that NOV will be firing on all cylinders, with oilservice companies continuing to retool and as drilling activity ramps up globally. Our 2011 and 2012 EPS estimates increase by $0.30 and $0.55, to $4.40 and $5.70 respectively."
For more ratings news on National-Oilwell Varco click here and for the rating history of National-Oilwell Varco click here.
Shares of National-Oilwell Varco closed at $81.96 yesterday.
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