Wells Fargo cuts NOV Inc. to Underweight, sees market conditions as unfavorable

Wells Fargo downgraded NOV Inc. to Underweight from Equal Weight with a price target of $16, down from $20 as part of a broader research note on Energy Servieces. The firm notes that the current market conditions are unfavorable to a meaningful upswing in orders for the company and that equipment companies are likely to lag peers against an overall backdrop of declining capex intensity and modest D&C activity recovery, the analyst tells investors in a research note. E&P companies continue to favor efficiency gains, cost-cutting ,and right-sizing over growth, and as such, NOV’s traditional onshore and offshore drilling rig customers should restrain their capex investments for the next several years, the firm added.