UPDATE: Morgan Stanley Upgrades FMC Technologies to Overweight on Improving Cyclical Fundamentals

Morgan Stanley upgraded FMC Technologies, Inc.

from Equal-weight to Overweight and announced a $65.00 price target. Morgan Stanley said, "We have seen a meaningful pickup in floating rig backlog, a key leading indicator for subsea equipment demand, which has risen to a record 3 years per rig, while over 30% of the known floating fleet is contracted through 2020. A pickup in longer lead-time offshore construction orders is also a solid indicator for subsea equipment orders. We are seeing a shortage of subsea equipment in Brazil and more disciplined bidding as backlogs fill up, which should drive margins higher." FMC Technologies closed at $44.30 on Monday.