NOV Inc. price target lowered to $21 from $24 at Citi

Citi lowered the firm’s price target on NOV Inc. to $21 from $24 and keeps a Buy rating on the shares as part of a Q3 preview for the oil and gas equipment and services space. Sentiment toward oilfield services “has rarely been lower” and the stocks appear to reflect a scenario where lower crude prices drive down revenues and compress margins, the analyst tells investors in a research note. Citi sees downside risk to crude and says estimates appear modestly too high for most companies. However, the downside risk appears “modest but not extreme,” says the firm. It prefers stocks with greater international exposure, greater buyback potential and differentiated growth prospects.