NOV - NOV cut at JPM as margin pressures seen pushing upside out to 2023

NOV Inc. (NOV -2.9%) is downgraded to Neutral from Overweight with a $17 price target at J.P. Morgan, citing weaker margin expectations in all three company segments as it copes with inflationary and COVID-19 headwinds across its global manufacturing businesses. In its Q4 earnings report, NOV signaled that inflationary headwinds likely would persist, and higher dayrates and levels of pressure pumping prices would be necessary for it to capitalize on improving backlog trends, which JPM analyst Arun Jayaram said means "the stock could prove to be more of a later cycle story, with stronger earnings growth prospects in 2023-24. Jayaram also said Q4 EBITDA of $69M was well below his $88M estimate on weaker margins in Rig Tech and Completion & Production, with the miss standing out following a stretch of earnings beats among its larger cap oilfield services peers. NOV shares have gained 17% over the past year but jumped

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NOV cut at JPM as margin pressures seen pushing upside out to 2023