Raising NOV’s FVE to $23 as Equipment Demand Steadily Recovers Worldwide

NOV posted solid fourth-quarter results, reflecting the strengthening demand and pricing power that developed throughout 2022. Following results, we’re slightly raising our fair value estimate to $23 from $22, and we maintain our no-moat rating and stable moat trend. Total revenue increased 10% quarter over quarter and nearly 40% year over year, mostly driven by elevated activity throughout North America. We expect moderating activity growth in North America will be offset by accelerating activity growth in international markets, particularly the Middle East. Revenue growth from international markets already outpaced North America in the fourth quarter.