National Oilwell Varco, Baker Hughes slide on RBC downgrades

|About: National Oilwell Varco, Inc. (NOV)|By:, SA News Editor

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.