Update shared on 27 Nov 2025
Fair value Increased 1.08%NOV's fair value estimate increased moderately to $16.33, up from $16.15. This change reflects analysts' views of sector momentum and recent upward price target revisions for the shares.
Analyst Commentary
Recent analyst activity reflects a mix of optimism and caution regarding NOV's near-term outlook and longer-term growth prospects. The following key takeaways summarize the current attitudes shaping the consensus around the company.
Bullish Takeaways- Bullish analysts have raised target prices, citing sector momentum and the potential for increased activity in international markets, especially Saudi Arabia in the coming year.
- Expectations for deepwater growth in the second half of next year are seen as a catalyst that could drive NOV's equipment and services demand higher.
- Upward price target revisions indicate confidence in the company’s ability to execute on current opportunities and benefit from sector tailwinds.
- Some analysts remain cautious, reducing their price targets and signaling concern about near-term execution risks.
- Lowered expectations reflect worries about margin pressure and competitive dynamics in the oilfield services sector.
- Bearish analysts express uncertainty around the timing and scale of potential international growth, particularly if activity does not accelerate as projected.
What's in the News
- Clay Williams, Chairman and CEO of NOV, will retire. Jose Bayardo, current President and COO, is set to succeed him as Chairman, President, and CEO effective January 1, 2026 (Key Developments).
- Armada and NOV have announced a strategic partnership to launch Beacon, a ruggedized edge computing device that enables real-time, AI-driven decision-making in remote industrial environments (Key Developments).
- NOV and Soiltech signed a Memorandum of Understanding to collaborate on global projects in drilling waste management, aiming to deliver customized solutions using their combined technologies (Key Developments).
- NOV reported the completion of a share repurchase, buying back over 6.2 million shares in the third quarter of 2025. The company has repurchased more than 31.2 million shares under the current program (Key Developments).
- The company issued financial guidance for Q4 2025, forecasting a year-over-year consolidated revenue decline between five and seven percent (Key Developments).
Valuation Changes
- The Fair Value Estimate has risen slightly from $16.15 to $16.33, reflecting a modest improvement in analysts’ outlook.
- The Discount Rate edged up marginally from 7.73% to 7.75%, indicating a slightly higher risk premium.
- Revenue Growth expectations increased slightly from 1.25% to 1.26%.
- The Net Profit Margin estimate advanced minimally from 6.26% to 6.26%.
- The future P/E ratio climbed from 10.63x to 11.46x, suggesting somewhat higher anticipated earnings multiples.
Disclaimer
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