UPDATE: Citigroup Raises PT to $19 on McDermott International

Citigroup raises its price target to $19 on Buy-rated McDermott International

as the company incorporates projects on a probabilistic basis. Citigroup says, "On 3/1/12 MDR shares rose by 13.8%, which compares to price appreciation of 2.6% for covered E&Cs (i.e. ex-MDR). In our view, such strong outperformance can be attributed to: 1) investors having increased conviction that the operational issues are under control, 2) no change in the 2012 outlook despite the challenging quarter (i.e. transition year with margins in the 7%-10% range), 3) investors' belief that the 2013+ storyline remains intact, as the company is well positioned to benefit from a robust opportunity set." MDR closed at $14.86 yesterday.