UPDATE: Stifel Nicolaus Increases Target to $20 on McDermott International

Stifel Nicolaus raises its price target to $20 from $16 on Buy-rated McDermott International MDR as shares climb on strong prospects. Stifel Nicolaus notes, "We view MDR's history of charges as a result of having underspent over the past ~15 years, and as a result execution was sacrificed. However, going forward, we believe capacity and capex levels will be increased as the company is investing to handle deeper water applications. The plus in the quarter was bids outstanding remained at a record $5B and management filled the $2B Inpex award with a host of prospects totaling the same amount." MDR closed at $14.86 a share on Thursday.