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National Oilwell Varco down nearly 10% in two days after Q1 warning

Published 04/17/2018, 12:22 PM
© Reuters.  National Oilwell Varco down nearly 10% in two days after Q1 warning
NOV
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SLB
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  • National Oilwell Varco (NOV -2.6%) extends its losses a day after warning of lower than expected Q1 revenues, citing weaker shipments of subsea production equipment and reduced progress on new offshore rig construction.
  • B. Riley FBR downgrades NOV to Neutral from Buy and lowers its price target to $40 from $42 on heightened risk of a more volatile, if not sustained slower, rate of newbuild-related orders by oilfield service contractors, especially pressure pumpers.
  • For large-cap exposure, B. Riley FBR recommends a rotation of funds from NOV to its new large-cap top pick Schlumberger (SLB +0.2%), which the firm likes due to its hybrid revenue splits for global onshore/offshore oilfield services of 60%/40% and its unique strengths in the international onshore and global deepwater markets.
  • Now read: Double-Digit Growth Fuels Schlumberger's 20% Upside


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