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.

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Comments (5)
  • swiver
    , contributor
    Comments (54) | Send Message
     
    Yet another one pumping up NOV!
    5 Jan 2014, 10:45 AM Reply Like
  • joelkatz
    , contributor
    Comments (552) | Send Message
     
    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 2014, 02:29 PM Reply Like
  • 2by4
    , contributor
    Comments (6) | Send Message
     
    Did the pond scum at Barron's say which hedge fund paid it to run this article?
    6 Jan 2014, 09:54 AM Reply Like
  • srfozdar
    , contributor
    Comments (3) | Send Message
     
    NOV is a typical Buffet type company! Currently, valuations are too cheap to ignore!
    30 Jan 2014, 06:09 PM Reply Like
  • joelkatz
    , contributor
    Comments (552) | Send Message
     
    Some revolutionizing news tomorrow from the board
    30 Jan 2014, 07:01 PM Reply Like
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