GTLS - NOV cut to Sell equivalent at BofA after big run-up as 'real challenges exist'

NOV Inc. (NOV -5.3%) slumps from a two-year high after Bank of America double downgrades shares to Underperform from Buy with a $22 price target, one of three oilfield services stocks cut at the firm after the group's massive rally during the past two weeks (NYSEARCA:OIH). NOV's risk-reward balance is no longer skewed positive after the stock's 35% month-to-date run-up, and "Russia is only going to create a tighter global supply chain that could delay the margin recovery story that was core to our bull thesis," BofA's Chase Mulvehill writes. "We are not 100% confident that Russia developments don't make sourcing materials like aluminum, copper, nickel and steel more problematic for a company that was already struggling with its supply chain and material cost inflation," according to Mulvehill. The firm also cuts Cactus (WHD -7.1%) and ChampionX (CHX -1.0%) to Neutral from Buy, but upgrades Chart Industries (GTLS +0.8%) to Buy

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NOV cut to Sell equivalent at BofA after big run-up as 'real challenges exist'