McDermott International, Inc. (MDR) Rating Increased to Strong-Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of McDermott International, Inc. (NYSE:MDR) from a hold rating to a strong-buy rating in a research report sent to investors on Thursday. The firm currently has $8.50 price target on the oil and gas company’s stock.
According to Zacks, “McDermott International's broad product portfolio, diversified geographical footprint, good market position and strong relationship with national oil companies provides a significant cushion against the downside risks inherent in its business. MDR's robust backlog, including its recent contracts with Saudi Aramco and BP, reflects steady demand from the customers. Despite the volatility in the commodity pricing environment, the company has maintained its excellent track record of earnings surprise history, beating estimates in each of the last ten quarters. The company's enhanced focus on operational execution and cost control have led to a strong balance sheet. All this is also reflected in the price performance of the company which has rallied 54% over the last one year, handily outperforming the broader industry which witnessed a loss of 10% over the same period. These factors account for our bullish stance on the stock.”
Several other equities analysts have also issued reports on MDR. Scotiabank set a $9.00 target price on shares of McDermott International and gave the company a hold rating in a report on Friday, March 31st. Deutsche Bank AG reiterated a hold rating and set a $7.00 target price (down from $8.00) on shares of McDermott International in a report on Saturday, April 22nd. Howard Weil upgraded shares of McDermott International from a sector perform rating to a sector outperform rating in a report on Thursday, May 25th. Scotia Howard Weill upgraded shares of McDermott International from a sector perform rating to a sector outperform rating in a report on Thursday, May 25th. Finally, ValuEngine lowered shares of McDermott International from a buy rating to a hold rating in a report on Tuesday, June 6th. Six analysts have rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the stock. McDermott International presently has a consensus rating of Buy and a consensus price target of $7.89.
McDermott International (NYSE MDR) traded down 2.57% on Thursday, reaching $7.19. 2,669,988 shares of the company’s stock were exchanged. The stock has a market capitalization of $2.04 billion, a P/E ratio of 35.95 and a beta of 1.38. McDermott International has a 1-year low of $4.41 and a 1-year high of $8.33. The firm’s 50 day moving average is $6.88 and its 200 day moving average is $6.98.
McDermott International (NYSE:MDR) last issued its quarterly earnings data on Tuesday, April 25th. The oil and gas company reported $0.08 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.01 by $0.07. McDermott International had a net margin of 2.40% and a return on equity of 4.75%. The business had revenue of $519.40 million during the quarter, compared to analyst estimates of $689.30 million. During the same period last year, the business posted $0.13 earnings per share. McDermott International’s quarterly revenue was down 28.8% compared to the same quarter last year. Analysts expect that McDermott International will post $0.42 EPS for the current year.
Several large investors have recently modified their holdings of the stock. CIBC World Markets Inc. acquired a new stake in shares of McDermott International during the first quarter worth about $101,000. HighTower Advisors LLC increased its stake in shares of McDermott International by 13.0% in the first quarter. HighTower Advisors LLC now owns 17,396 shares of the oil and gas company’s stock worth $117,000 after buying an additional 2,000 shares during the last quarter. O Shaughnessy Asset Management LLC acquired a new stake in shares of McDermott International during the first quarter worth about $128,000. Teacher Retirement System of Texas increased its stake in shares of McDermott International by 4.6% in the first quarter. Teacher Retirement System of Texas now owns 19,136 shares of the oil and gas company’s stock worth $129,000 after buying an additional 849 shares during the last quarter. Finally, Koch Industries Inc. increased its stake in shares of McDermott International by 97.0% in the first quarter. Koch Industries Inc. now owns 20,254 shares of the oil and gas company’s stock worth $137,000 after buying an additional 9,974 shares during the last quarter. 73.81% of the stock is owned by hedge funds and other institutional investors.
McDermott International Company Profile
McDermott International, Inc is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects.
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