UPDATE: Citigroup Initiates Edgen Group with Buy, $10 PT; Leveraged to Energy Infrastructure Expansion

Citigroup initiates its coverage on Edgen Group

with a Buy rating and a $10 price target. Citigroup says, "As a distributor of specialty steel products to companies across the global energy supply chain, EDG should benefit from higher levels of capital spending on energy-related infrastructure. We believe these strong fundamentals provide a compelling investment opportunity in light of the stock's significantly discounted valuation versus its peers." EDG closed at $7.49 on Tuesday.