UPDATE: Citigroup Reduces PT to $77 on Lufkin Industries, Maintains Buy

Citigroup reiterated its Buy rating on Lufkin Industries

as it believed the current pullback on shares is overdone. Citigroup adjusted down its price target from $87 to $77 per share. Citigroup said, "LUFK shares declined by 21% on the day as a result of the significant 2Q12 earnings disappointment and downward 2012 guidance revision. However, the order rate came in at record levels for Oilfield, and a significant amount of the expenses incurred in the quarter were for U.S. manufacturing facility capacity additions that will support further anticipated growth. We have lowered our EPS estimates and price target but reiterate our Buy rating on LUFK. We view this pullback as a buying opportunity." Lufkin Industries closed at $46.65 on Monday.