UPDATE: Global Hunter Securities Initiates Coverage on McDermott International with Buy Rating, $16 PT

In a report published Wednesday, Global Hunter Securities initiated coverage on McDermott International

with a Buy rating and a $16.00 price target. Global Hunter noted, “Vertically integrated engineering, procurement, installation and construction (EPIC) contractor MDR offers pure play leverage to the burgeoning global offshore development cycle. Building visibility in the form of bids outstanding, a robust backlog and sound underlying end-market dynamics related to robust oil prices and impressive offshore exploration successes are all encouraging aspects of the MDR story. Given the inherent volatility of large project award flow, the execution risks associated with offshore installation work and MDR's ambitions to expand its deepwater presence, the stock is not for the faint of heart. However, we believe that investors can opportunistically buy MDR shares over the next 12-24 months as the global offshore construction cycle kicks into high gear. Accordingly, we are initiating coverage with a Buy rating and a $16 price target.” McDermott International closed on Tuesday at $12.18.