Credit Suisse’s Jamie Cook downgraded the ratings for both Manitowoc Company Inc (NYSE: MTW) and McDermott International (NYSE: MDR) from Outperform to Neutral.

Manitowoc

The price target has been reduced from $5.10 to $4.24. Analyst Jamie Cook mentioned that the company had outperformed despite a challenging macro environment.

“We believe investors fully appreciate the opportunities for MTW to improve the profitability and returns of the crane business over the next cycle, which will likely be implemented with increased rigor with a new CEO at the helm,” Cook wrote.

He added, however, that the global macro environment continued to be unfavorable, and there is increased risk of a further decline in the demand for cranes in 2017, which would push recovery further out.

The EPS estimates for FY16, FY17 and FY18 have been reduced to $0.12, $0.07 and $0.29, respectively. Cook commented that apart from an M&A, there seemed to be “no compelling reason” for the shares to continue gaining.

McDermott

The price target has been raised from $3.50 to $4.04. McDermott’s shares have gained 18.5 percent year-to-date, and have outperformed the broader E&C group by 14 points.

“We believe investors fully appreciate the operational improvements and increased risk management implemented by the management team in particular President & CEO David Dickson and EVP & CFO, Stuart Spence as well as MDR's ability to capture brownfield work in the Middle East and improving visibility somewhat into 2017,” Cook mentioned.

He added, however, that challenges in the global macro environment had continued and, even with crude rising recently, the offshore business seems to be the most challenged in the medium term. Moreover, McDermott’s energy offering was less diverse and recurring earnings stream less meaningful than its E&C peers.

The EPS estimates for FY16 and FY17 estimates have been reduced to $(0.04) and $0.13, respectively.