Several investment firms have updated their stock ratings and price targets on shares of McDermott International (NYSE: MDR) in the last week:
- McDermott International was downgraded by analysts at KeyBanc from a “buy” rating to a “hold” rating. They now have a $17.00 price target on the stock. They wrote, “Our estimates compare to consensus of $0.84 and $1.17, respectively. We think it is important to point out the following points, in regard to MDR and our rating to help put our outlook into perspective alongside MDR’s potential; 1) Our Rating Change is Predicated on Incremental Risk Around 2H13/2014 Margins; 2) MDR is Trading Close to Our Estimate of Liquidation Value, Assuming No Material Losses; and 3) MDR’s Strategy Remains Sound, Execution Carries More Risk – we want to emphasize that, in our opinion, MDR’s strategy remains sound, as in when transitioning to deeper water activity where there are limited players and the outlook is very strong. Our rating change reflects on a greater level of risk as MDR executes on this strategy over the next couple of years.”
- McDermott International was downgraded by analysts at Global Hunter Securities from a “buy” rating to a “neutral” rating. They now have a $11.00 price target on the stock, down previously from $14.00.
- McDermott International was downgraded by analysts at KeyBanc Capital Mkts from a “buy” rating to a “hold” rating.
- McDermott International had its price target lowered by analysts at UBS AG from $16.00 to $15.00. They now have a “buy” rating on the stock.
- McDermott International had its price target lowered by analysts at Stifel Nicolaus from $18.00 to $15.00. They now have a “buy” rating on the stock. They wrote, “4Q12 EPS of $0.17 missed consensus by $0.06 as project overruns, cost increases and lower productivity in the Asia Pacific and Atlantic regions impacted EPS by $0.14. … MDR shares fell ~16% in the day as the company now expects the Atlantic segment (13% LTM revs, 19% backlog) to be drag on 2013 results vs. the prior view of slightly profitable due to under absorption and continued reorganization headwinds. The updated view is a drag on OPM% of 3%-4%, keeping the 2013 OPM% guidance in a range of 7%-10% versus the long-term target of 10%-12%.”
- McDermott International was upgraded by analysts at Zacks from an “underperform” rating to a “neutral” rating. They now have a $11.00 price target 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 0.19% on Tuesday, hitting $10.50. McDermott International has a 52-week low of $9.04 and a 52-week high of $14.23. The stock’s 50-day moving average is currently $12.42. The company has a market cap of $2.556 billion and a price-to-earnings ratio of 12.39.
McDermott International, Inc. (MII) is an engineering, procurement, construction and installation (EPCI) company.
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