Seeking Alpha

Barron's sees 30% upside for National Oilwell Varco

  • Shares of National Oilwell Varco (NOV) may be trailing the performance of the broad market over the past two years, but its "growth prospects remain plenty bright [thanks to] ramping orders for aftermarket parts and replacement orders for aging drill fleets," Jack Hough writes.
  • There are a number of catalysts for the Houston-based company going forward, including a spinoff of the distribution business, a move Hough says could "unlock a higher valuation and potential for fast dividend growth."
  • Falling operating margins should begin to rise this year and next, while FPSO sales and the parts business "could help offset any cooling in demand for offshore drilling rigs."
  • Ultimately, the shares look cheap at 12.7X 2014 estimates, Barron's says.
Comments (5)
  • Yet another one pumping up NOV!
    5 Jan, 10:45 AM Reply Like
  • NOV is no pumping target, this company has a 33.71 billion dollar market cap, with 2.6 million shares outstanding. It's definitely a value company, with big opportunities.
    5 Jan, 02:29 PM Reply Like
  • Did the pond scum at Barron's say which hedge fund paid it to run this article?
    6 Jan, 09:54 AM Reply Like
  • NOV is a typical Buffet type company! Currently, valuations are too cheap to ignore!
    30 Jan, 06:09 PM Reply Like
  • Some revolutionizing news tomorrow from the board
    30 Jan, 07:01 PM Reply Like
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