Morgan Stanley analyst Ole Slorer said National Oilwell is a top-tier global franchise due to its market leadership, margins, and free cash flow story, yet trades at a discounted valuation to other market leaders, despite comparable free cash flow generation. Slorer said National is shifting its focus towards increased exposure to capex across the oilfield services value chain and away from offshore rig building. He believes the market is underestimating the earnings power from international rig retooling, US equipment revamp, and offshore rig maintenance and its new profile will help narrow the valuation gap. Slorer raised National Oilwell's price target to $60 from $45, and his bull case to $100, and reiterated his Overweight rating.