UPDATE: Goldman Sachs Initiates Coverage on MRC Global

According to a research report published this morning, Goldman Sachs has initiated MRC Global

with a Neutral rating and $20 PT. In the report, Goldman Sachs commented," We initiate coverage of MRC Global, a $2.1 bn market cap energy distribution company, with a Neutral rating and a 12-month target of $20 (6.8x 2012 EBITDA). We are positive on MRC's position as the No. 1 NA oilfield distributor, diversity across up-, mid- and downstream markets, and potential for significant inorganic growth and international expansion. MRC also sharply outperformed end markets in 1Q and may further exceed expectations near term. However, we believe more consistent FCF is required to justify a higher valuation akin to leading industrial distributors, and rising OCTG inventories may weigh on near-term sentiment." MRC Global is currently trading at $20.51.