UPDATE: Global Hunter Securities Downgrades Robbins & Myers to Neutral
Global Hunter Securities cut its rating on Robbins & Myers (NYSE: RBN) from Buy to Neutral while raising its price target from $50 to $60.
Global Hunter Securities commented, "We are downgrading RBN to Neutral from Buy and revising our price target to $60 (from $50 previously) based on the all-cash deal offer price. We believe that NOV went through a full process in bidding for the name, will maximize the synergies of acquiring the company and RBN already has approval from its largest shareholder, ergo we do not expect a competing bid. While there is overlap in the land BOP market in N. America and in power sections for downhole motors, we believe that the large competitors in those markets and the fact that NOV will not have >50% market share in either segment (~40% in NAM BOPs) will not present any anti-trust issues and the deal will be approved."
Robbins & Myers closed at $59.63 on Thursday.
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