National Oilwell cut to Neutral from Buy at ISI, shares -2.8%

National Oilwell Varco (NOV -2.8%) is downgraded to Neutral from Buy at ISI Group, which says deepwater and ultra-deepwater rig demand are diminishing, and dayrates are weaker than the market appreciates.

Other oil services names also are lower: SLB -0.9%, HAL -0.2%, BHI -0.2%, NE -3.8%, CAM -1.3%, WFT -1.8%, SPN -2%, FTI -1.3%, DRQ -2.9%, KEG -0.9%.

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Comments (7)
  • sidgreen60
    , contributor
    Comments (21) | Send Message
    Somebody at ISI Group must want to buy NOV cheaper. No other vendor as they are known will keep making money as long as oil companies drill for oil.
    13 Mar 2014, 05:15 PM Reply Like
  • marktuthdr2
    , contributor
    Comments (151) | Send Message
    I believe it. Does anybody know if Buffet still has a big stake in NOV, and if its % of his portfolio has been going up or down lately? I bought some more NOV today on the dip. My perception is this is a solid org.
    13 Mar 2014, 06:41 PM Reply Like
  • Klimbim
    , contributor
    Comments (179) | Send Message
    With an orderbacklog of 21 Billion, I believe they are imune from any blips in the market. In a recent statement from SDRL, they consider this softening to be short term anad see a pick up coming in 2015. And as I understand it, the decline
    in daily rates is pertinent mostly to older rigs, which puts NOV in exactly the right spot.
    13 Mar 2014, 08:35 PM Reply Like
  • Investing Doc
    , contributor
    Comments (1039) | Send Message
    Considering the broad drop of the market today, I'm not sure how much of this could be attributed solely to an analyst downgrade. At any rate, I'm pretty sure the fundamentals of NOV-- and other companies in the oil industry-- remain fairly intact. Time to scrounge up some dry powder...
    13 Mar 2014, 10:13 PM Reply Like
  • swiver
    , contributor
    Comments (59) | Send Message
    When is the downward trend from 85 to 75 going to bottom out?


    14 Mar 2014, 12:53 PM Reply Like
  • marktuthdr2
    , contributor
    Comments (151) | Send Message
    When the above article was written, Fidelity Investments had the following breakdown of the analysts they follow, in regards to this stock (NOV):
    5 Neutral, 2 Outperform, 3 Buy.
    They have not changed at all since ISI changed their rating, or this article was written. Overall, the analysts Fidelity follows have become more bullish on NOV in the past several weeks. I am long NOV, and this article is intended to give additional perspective on ISI's rating change.
    15 Mar 2014, 06:13 PM Reply Like
  • mjtroll1
    , contributor
    Comments (2914) | Send Message
    have been long nov/spy pair for several months... although I know valuation is good took recent strength as opportunity to exit..will reenter on pullback or payup it appears the underperformance trend has reversed
    28 Mar 2014, 03:21 PM Reply Like
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