UPDATE: Citi Lowering Price Target on McDermott International

Citi Investment Research is out with a research report on McDermott International Inc MDR and it is lowering its price target to $15 from $22.50, but is keeping its Buy rating on shares. In a note to clients, Citi Investment Research writes, "MDR shared a preliminary 2012 outlook, which included the following: 1) operating margins in 2012 in the rage of 7%-10% (i.e. average over last 8 quarters is 12.7%), 2) revenues of ~$3.6 billion, and 3) $312 million of revenues flowing through to the bottom line at zero-margins. Our revised 2011, 2012 and 2013 EPS estimates are $0.79, $0.84, and $1.14, respectively." Shares of MDR lost 9 cents yesterday to close at $11.76.