UPDATE: Morgan Stanley Upgrades FMC Technologies to Overweight on Improving Cyclical Fundamentals
Morgan Stanley upgraded FMC Technologies, Inc. (NYSE: FTI) 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.
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