UPDATE: Morgan Stanley Initiates Underweight on MRC Global
Morgan Stanley initiates its coverage on MRC Global (NYSE: MRC) with an Underweight rating.
Morgan Stanley says, "MRC … derives just 50% of its US upstream and midstream from shales, with minimal offshore exposure. …While there are no direct comps to … MRC, we used industrial distributors with similar margin profiles and cyclicality, which have historically traded at an average multiple of 7.5x 12-mo forward EBITDA. We value MRC at $27 (30% upside) by applying a multiple of 7x, a modest discount due to MRC's higher debt profile."
MRC closed at $20.15 on Tuesday.
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