UPDATE: Citigroup Lowers PT on National-Oilwell Varco on Robbins & Myers Acquisition

In a report published Wednesday, Citigroup analyst Robin Shoemaker reiterated a Buy rating on National-Oilwell Varco NOV, but lowered the price target from $96.00 to $85.00. In the report, Shoemaker noted, “We have updated our EPS estimates to include the acquisition of Robbins & Myers, Inc. for approximately $2.5 billion in cash. The company borrowed approximately $1.4 billion under its $3.5 billion revolving credit facility and used approximately $1.1 billion of cash on hand to fund the acquisition, which closed on February 20, 2013. The changes to our model also reflect market outlook updates and revised margin assumptions for all business lines since the Robbins & Myers acquisition was announced on August 9, 2012.” National-Oilwell Varco closed on Tuesday at $68.03.