National Oilwell Varco, Inc (NOV)

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National Oilwell Varco started at Hold at R. F. Lafferty

National Oilwell Varco (NOV +0.8%) is initiated with a Hold rating and a $39 price target at R. F. Lafferty.

The firm believes oil producers will consume the spare capacity in service, equipment and technologies as they begin to reactivate drilling activities, and the uptick in demand will drive potential new orders and increase NOV's backlog, which will result in higher revenues and margin expansion.

Given the robust outlook for service providers, Lafferty believes the expected oil recovery in H2 2017 and going into 2018 already is priced in the stock.