Barclays downgrades NOV to Underweight on ‘structural disadvantage’

Barclays downgraded NOV Inc. to Underweight from Equal Weight with an unchanged price target of $20. The analyst says NOV is at a “structural disadvantage” this cycle as service companies restrain capex and drilling contractors consolidate, as opposed to the build out of equipment and assets in the prior cycle. The company’s earnings remain well below last cycle, while its return on investment capital is likewise at the bottom of the diversified comp group, the analyst tells investors in a research note.