NOV - NOV: Time To Lock In Some Profits

Summary

• NOV finally saw emerging green shoots of a recovery during the first half of 2022 as oil and gas drilling picked up steam.
• Subsequently, their latest underlying financial performance is now back around its level during 2019 before the last severe downturn.
• Whilst positive, their upside potential now appears much less given the rig count stagnating as economic risks loom on the horizon.
• After seeing their share price rally near 30%, they no longer offer desirable value in my eyes.
• As a result, I believe that downgrading to a hold rating is appropriate with it now time to lock in some profits.

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