Zacks Investment Research upgraded shares of National Oilwell Varco, Inc. (NOV) from UNDERPERFORM to NEUTRAL on July 11, 2013, with a target price of $76.00.
We are upgrading our recommendation on National Oilwell Varco shares to Neutral from Underperform, reflecting a balanced risk/reward profile. We like its healthy backlog, solid balance sheet and strength in international operations, particularly in the Middle East and Brazil. The recently completed Robbins & Myers acquisition will further boost NOV's earnings visibility by expanding its blowout preventer product line a critical safety machine for a well. The recent influx of offshore rig awards adds to the positive sentiment. However, we think the current valuation is fair and adequately reflects the company's future growth prospects. Moreover, with markets remaining competitive and pricing likely to be weak, we see no obvious catalyst in NOV's business to significantly push the stock price higher.
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