Bank of America Merrill Lynch Maintains Buy On National Oilwell Varco

Bank of America Merrill Lynch is out with a research report on National Oilwell Varco NOV and is maintaining its Buy rating and $94 price target on shares. In a note to clients, Bank of America Merrill Lynch writes, "We maintain our Buy rating owing to high/growing order/backlog expectations and margin upside from the tightening drill pipe market. Acquisitions remain a source of upside not included in our estimates. We are increasing our 2011/2012 EPS estimates to $4.50/$5.40 from $4.22/$5.34 owing to higher Rig Technology margin assumptions, and establishing a 2013 EPS estimate at $6.50. We are increasing our PO to $94 from $91 (implies 14.5x 2013E EPS)." Shares of NOV lost 35 cents yesterday to close at $81.96.