National Oilwell Varco, Baker Hughes slide on RBC downgrades

National Oilwell Varco (NOV -2.1%) is downgraded to Sector Perform from Outperform with an $86 price target at RBC, which believes shares are range-bound in the near term due to offshore drilling headwinds that will limit inbound rig tech orders.

The firm continues to view NOV as a high-quality name and would become more positive on a price pullback into the low 70s.

Baker Hughes (BHI -1.2%) also is cut to Sector Perform, with a $60 target, as the firm sees NAM margins progressing at a more modest pace than originally anticipated, averaging 11.9% in 2014 vs. 13.1% previously.

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Comments (8)
  • swiver
    , contributor
    Comments (57) | Send Message
    So, we have got one group claiming NOV has a 30% upside, other groups recommending it as being underpriced, and RBC downgrading it. Guess I'll just hang on to the stock I got at their 15% discount!
    8 Jan 2014, 04:05 PM Reply Like
  • Jimmie768
    , contributor
    Comment (1) | Send Message
    Its called Manipulation on the GRAND SCALE
    NOV has strong financials, technical s, mega - bookings, with a strong future and a future division split.. When the true investors start to purchase the stock, like Buffett, FMR Barclays , and NOV is added to the ETF's the Manipulators step in for a fast $XXX Million.
    Many with mega $$ do it and no one stops them, just hold on to NOV


    Even Jim Cramer knows how to manipulate and he has made $XXXMillions see for yourself
    17 Jan 2014, 05:47 AM Reply Like
  • moseslarsen
    , contributor
    Comments (753) | Send Message
    RBC is just trying to pick up more shares in the low $70s. I bought in the mid 60s...maybe they (RBC and other naynays) should have bulked their position sooner. Chees, Moses
    8 Jan 2014, 06:39 PM Reply Like
  • efuerter 1
    , contributor
    Comments (6) | Send Message
    Exactly. Is it really a downgrade if the target or ice is still 10 percent greater than the current price? What long term investor thinks that 10 percent gain plus the dividend to be earned is something to stay away from. To me downgrade means stay away from the stock !
    8 Jan 2014, 07:43 PM Reply Like
  • joemarko
    , contributor
    Comments (32) | Send Message
    If its good enough with buffet I'm ok
    8 Jan 2014, 08:58 PM Reply Like
  • Scream Dream
    , contributor
    Comments (31) | Send Message
    Banks are famous for doing this.....get everyone fearful and sell, and they they buy for's how they line their own pockets.
    9 Jan 2014, 11:20 AM Reply Like
  • unclemike7849
    , contributor
    Comments (364) | Send Message
    What "offshore drilling headwinds"? The outlook is positive from almost everyone's point of view, and with Mexico finally getting their act together, this will be another large impetus for owning NOV. I agree with the comments above: RBC is obviously trying to knock the stock down to buy it in the low 70's, or they just don't know what they're talking about.
    9 Jan 2014, 01:18 PM Reply Like
  • joemarko
    , contributor
    Comments (32) | Send Message
    I know, rbc doesn't know what they are talking about. That is the last place I would look to for advice . If it were gs, you already know they only look out for themselves.
    10 Jan 2014, 06:25 PM Reply Like
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