Bank of America Reiterates Buy Rating, $86 PT on National Oilwell Varco

In a report published Monday, Bank of America reiterated its Buy rating and $86.00 price target on National Oilwell Varco NOV. Bank of America noted, “We are keeping our 2013/2014 EPS estimates at $6.00/$6.85 and PO at $86, or 12.5x 2014 EPS. NOV traded 10-14x consensus NTM EPS in 2012. Our slightly higher Petroleum Services & Supplies (PSS) assumptions are offset by only a half quarter of the Robbins Myers (RBN) acquisition in 1Q. Our rig-by-rig analysis supports orders of $2.4bn in 1Q13, with upside to $3.4bn if all nine Brazilian drillships are booked by NOV. Critically, demand for new floaters looks to be broadening and should be a positive catalyst for the stock in our view.” National Oilwell Varco closed on Friday at $71.26.