Market Overview

Goldman Sachs Initiates McDermott At Conviction Buy

Share:

Goldman Sachs is initiating coverage on shares of McDermott International (NYSE: MDR) with a $20 price target, and it is on Conviction Buy List.

In a note to clients, Goldman writes, "We initiate coverage of MDR with a Buy rating and are adding it to the Americas Conviction List with a $26, 12-month price target. MDR is highly differentiated due to its pure exposure to offshore O&G investment, which we believe is set to accelerate due to structural supply constraints. In addition, we like MDR's position in high-growth markets like Asia Pac and Middle East. Lastly, we believe MDR is drastically under-earning in the Atlantic given low fabrication and marine vessel utilization, and a slowly burgeoning deepwater market. While our estimates are below consensus, we believe the risk/reward is compelling given the strong cycle ahead."

Shares of MDR lost 21 cents yesterday to close at $17.98, a loss of 1.2%.

Posted-In: Conviction Buy List Goldman SachsAnalyst Color Price Target Initiation Analyst Ratings

 

Related Articles (MDR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TSCOPiper SandlerMaintains119.0
UNPBMO CapitalMaintains200.0
UNPArgus ResearchMaintains205.0
ISRGJP MorganMaintains665.0
EHTHRBC CapitalMaintains132.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com