Citigroup raises its price target to $19 on Buy-rated McDermott International MDR as the company incorporates projects on a probabilistic basis.
Citigroup says, "On 3/1/12 MDR shares rose by 13.8%, which compares to price appreciation of 2.6% for covered E&Cs (i.e. ex-MDR). In our view, such strong outperformance can be attributed to: 1) investors having increased conviction that the operational issues are under control, 2) no change in the 2012 outlook despite the
challenging quarter (i.e. transition year with margins in the 7%-10% range), 3)
investors' belief that the 2013+ storyline remains intact, as the company is well
positioned to benefit from a robust opportunity set."
MDR closed at $14.86 yesterday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in