UPDATE: Wunderlich Initiates Coverage on MRC Global on Position for Energy Infrastructure Build

In a report published Friday, Wunderlich Securities analyst Brent D. Rakers initiated coverage on

with a Buy rating and $33.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of MRC Global Inc. (MRC) with a Buy rating and a $33 target. We believe MRC offers unique participation in domestic midstream/downstream infrastructure additions without the project execution risk of oilfield construction companies. Revenue/margin should benefit in 2014-2015 from product pricing stabilization; an outstanding OCTG trade case may be a further potential positive wild card. Strategically, MRC has been successful with large regional/global contracts including a sizeable deal with Shell, and domestic/international acquisitions are expected to continue with MRC's balance sheet offering solid flexibility. Despite multiple guidance reductions, we remain optimistic for 2H13 and particularly for 2014-2015; our year estimates are slightly above consensus.” MRC Global closed on Thursday at $26.86.