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Investing.com - Raymond James reiterated an Outperform rating and $23.00 price target on NOV Inc. (NYSE:NOV) shares.
The firm maintained its view following NOV’s update to guidance and impact on Middle East operations. Raymond James made slight changes to its estimates ahead of the company’s earnings report.
The firm noted that the balance sheet remains in great shape with free cash flow generation expected. This assessment aligns with NOV’s strong current ratio of 2.42 and a free cash flow yield of 13%, while InvestingPro data shows liquid assets exceed short-term obligations. The stock has delivered a remarkable 65% return over the past year, and investors can access comprehensive analysis through NOV’s Pro Research Report, available for this and 1,400+ other US equities. The assessment comes despite what the firm characterized as near-term noise.
NOV Inc. provides equipment and technology to the oil and gas industry. The company operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies.
Raymond James set its price target at $23 per share for NOV stock, representing potential upside from the current price of $18.75. According to InvestingPro analysis, the stock appears fairly valued at current levels.
In other recent news, NOV Inc. has announced its anticipated first-quarter 2026 financial results, projecting revenues of approximately $2.05 billion. The company expects an adjusted EBITDA of $177 million, which is below the previous estimate of $204 million by Goldman Sachs. The firm attributed this decrease to disruptions in the Middle East, specifically mentioning a $54 million revenue impact and a $32 million EBITDA impact due to the Iran War. In response, RBC Capital downgraded NOV’s stock rating from Outperform to Sector Perform, citing a less attractive risk/reward outlook for the company.
Goldman Sachs has maintained a Sell rating on NOV, with a price target of $20.00, while RBC Capital retained a price target of $21.00 despite the downgrade. Additionally, NOV has announced a significant investment of $200 million to double the capacity of its subsea flexible pipe manufacturing facility in Açu, Brazil. This expansion is planned over the next three years to meet the growing demand from deepwater developments and an anticipated replacement cycle. The current facility is operating at or near full utilization with a backlog extending into 2028.
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