Shares of oil driller National Oilwell Varco (NOV) - Get Report are rising more than 5% Thursday after the company was upgraded to buy from hold by analysts at Jefferies who also raised the company's price target to $25 from $23 per share. 

Analyst Brad Handler wrote that the company has growth potential based on its backlog and that its "completion and production solutions" business, or CAPS, could see elevated order intake in the second half. 

The firm says that if NOV can achieve $2 billion in CAPS orders in 2019, it could see a solid inflection in revenue in 2020 because later cycle offshore equipment can be delivered in 9 to 15 months. 

The base case for this forecast has international benchmark Brent crude prices averaging $61 per barrel in the second half of this year and $59 per barrel in 2020. 

"Underpinning our new positive outlook is a recent improvement in orders for offshore/
international equipment, much of which is production infrastructure related," Handler wrote. 

NOV shares were rising 5.85% to $21.90 Thursday afternoon. The company's new price target represents a potential upside of 21% from the stock's previous closing price of $20.69.