NOV - Citi tactically cautious on oilfield services given outperformance and supply chain
Citi analyst Scott Gruber downgraded NOV (NYSE:NOV) and Cactus (NYSE:WHD) to hold ahead of the open Monday, citing year-to-date outperformance and supply chain challenges. Gruber upgraded Nabors (NYSE:NBR) to hold, as global exposure and rig rate improvement killed the bank's bearish free cash flow thesis. The note followed a double downgrade of NOV (NOV) last week from Bank of America, as the analyst anticipated supply chain issues and cost inflation would hit margins. With oil prices easing (NYSEARCA:USO), and costs rising, the risk of E&P management teams accelerating production growth may be reduced.
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Citi "tactically cautious" on oilfield services given outperformance and supply chain