National Oilwell Varco (NYSE:NOV) surprised analysts and commentators with their strong backlog outlook for rigs and equipment, and Canaccord Genuity particularly liked it, maintaining their "Buy" on the company on that growing backlog and outperformance in the third quarter.
"New capital equipment orders of $1.18B provided the biggest upside surprise, as two Brazilian floaters and increased global demand for rigs/equipment improved the backlog outlook. For PS&S and Distribution, strong NAM drilling activity and service intensity continue to drive revenue growth and margin expansion. Our Q4 and 2011 EPS estimates are raised to $0.95 and $3.75 respectively."
Others liked the outlook for National Oilwell as well, as they attracted a lot of attention Wednesday, with trading volume almost triple its daily 3-month average.
National closed at $54 even Wednesday, gaining $1.97, or 3.79 percent. Canaccord put a price target of $65 on them.
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