UPDATE: J.P. Morgan Upgrades McDermott International; Raises PT
According to a research report published this morning, J.P. Morgan has upgraded McDermott International (NYSE: MDR) from Neutral to Overweight, and increased PT from $14.50 to $16.
In the report, J.P. Morgan said, "We raise our estimates to reflect increased confidence in the outlook, which includes a geograpically-diverse mix of offshore projects. Driven by two large SURF wins, MDR posted strong Q1 awards (BtB: 3.6x) and highlighted a robust bid funnel (including $4.8bn in bids outstanding), with a continued bias toward overseas markets (Asia-Pac, Middle East). Despite the sizable Q1 margin beat, MDR endorsed its 2012 guidance range of 7-10%; we assume 9% in 2012, and 11% in 2013, with barge utilization a likely swing factor."
McDermott International closed Friday at $11.37.
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