UPDATE: Citi Lowers McDermott International's PT

According to a research report published this morning, Citi has lowered McDermott International's MDR PT from $19 to $18. In the report, Citi said, "On 5/11/12 MDR shares rose by ~15%, which compares to price appreciation of 0.4% for covered E&Cs (i.e. ex-MDR). In our view, the strong outperformance can be attributed to: 1) stronger than expected operational performance driven by a 450 bps upside surprise in margins, 2) increased conviction that the operational issues are in the past, and 3) investors' belief that 2012 could be better than previously expected and that the longer-term thesis remains intact. Notably, despite a very strong start to the year, mgt. guidance remains unchanged." Citi maintains its Buy rating on McDermott International, which closed Friday at $11.37.