What Do Analysts Forecast for National Oilwell Varco?
What Do National Oilwell Varco's Fiscal 1Q16 Earnings Tell Investors?
Wall Street analysts’ forecast
In this part, we’ll look at Wall Street analysts’ forecast for National Oilwell Varco (NOV) shares following its fiscal 1Q16 earnings release.
Consensus rating for National Oilwell Varco
Approximately 23% of analysts tracking National Oilwell Varco rate it a “buy” or some equivalent. Approximately 67% rate the company a “hold” or some equivalent. Only 10% of the analysts recommended a “sell.” National Oilwell Varco is 0.96% of the iShares Select Dividend (DVY).
In comparison, ~69% of analysts tracking Weatherford International (WFT) rate it a “buy” or some equivalent. Approximately 26% rated it a “hold” and 5% rated it a “sell.”
Analysts’ recommendations
When it comes to individual recommendations, RBC Capital Markets, a part of the Royal Bank of Canada, gave National Oilwell Varco a target price of $35 following its fiscal 1Q16 earnings release. Currently, National Oilwell Varco trades near $33. This implies an ~5% return for the next 12 months. BMO Capital Markets is the investment banking subsidiary of Canadian Bank of Montreal. It gave National Oilwell Varco a one-year target price of $23—one of its lowest target prices. This implies a -31% return over the next year.
Among the large investment banks, Morgan Stanley (MS) gave National Oilwell Varco a one-year target price of $45—one of its highest target prices. This implies an ~35% return at its current price over the next 12 months.
Analysts’ target prices
Following its fiscal 1Q16 financial results, the highest target price for National Oilwell Varco is $55 and the lowest is $22. The median target price, surveyed among sell-side analysts, for National Oilwell Varco is ~$29.9. Currently, National Oilwell Varco is trading at ~$33. This implies an ~10% downside at its median price.
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