McDermott International (NYSE: MDR) was upgraded by Zacks from an “underperform” rating to a “neutral” rating in a note issued to investors on Monday. The firm currently has a $11.00 target price on the stock.
Zacks‘ analyst wrote, “We are upgrading McDermott International to Neutral from Underperform. Given its geographic footprint in high-growth regions, technology leadership and efficient execution skills, the company is poised to benefit from the strong industry fundamentals for offshore construction activities through 2013 and beyond. We believe order flow and backlog for McDermott’s products and services will continue to be healthy and trend higher in the near-to-medium term. Additional positives in the McDermott story include growing international operations and a solid balance sheet. However, steep operating costs, an erratic earnings trend over the last few quarters, uncertainty regarding the timing of big awards and the clouded post-split outlook will continue to weigh on McDermott’s results. As such, we expect its growth potential to be restrained.”
McDermott International traded down 2.24% on Monday, hitting $10.46. McDermott International has a 1-year low of $9.04 and a 1-year high of $14.68. The stock’s 50-day moving average is currently $12.46. The company has a market cap of $2.546 billion and a price-to-earnings ratio of 12.60.
McDermott International last issued its quarterly earnings data on Thursday, February 28th. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by $0.06. The company had revenue of $995.95 million for the quarter, compared to the consensus estimate of $981.49 million. During the same quarter in the previous year, the company posted $0.04 earnings per share. The company’s revenue for the quarter was up 22.0% on a year-over-year basis. On average, analysts predict that McDermott International will post $0.84 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on MDR. Analysts at Stifel Nicolaus cut their price target on shares of McDermott International to $15.00 in a research note to investors on Monday. Separately, analysts at UBS AG cut their price target on shares of McDermott International from $16.00 to $15.00 in a research note to investors on Monday. They now have a “buy” rating on the stock. Finally, analysts at KeyBanc Capital Mkts downgraded shares of McDermott International from a “buy” rating to a “hold” rating in a research note to investors on Monday.
Nine research analysts have rated the stock with a buy rating, three have issued an overweight rating, and two have assigned a hold rating to the stock. The company has an average rating of “overweight” and a consensus price target of $15.36.
McDermott International, Inc. (MII) is an engineering, procurement, construction and installation (EPCI) company.
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