MRC Global Stock Rating Upgraded by Bank of America (MRC)
MRC Global (NYSE:MRC) was upgraded by equities research analysts at Bank of America from a “neutral” rating to a “positive” rating in a research note issued to investors on Monday. The firm currently has a $28.00 price target on the stock, down from their previous price target of $31.00. Bank of America’s price objective would suggest a potential upside of 9.03% from the stock’s previous close.
The analysts wrote, “MRC Global (MRC) is aggressively trying to replace revenues from its top midstream customers through offering low margin line pipe to new customers and then ‘upselling’ higher margin products six-to-nine months later as sales to top midstream line pipe customers have not rebounded as expected. Accordingly, the company increased its 2014 revenues guidance but lowered EBITDA guidance by 2% from unfavorable mix. “We are maintaining our 2014/2015E EPS at $1.66/$2.10. Notably, our 2014E EPS is 4% below the consensus estimate. Our PO declines to $28 from $30 as we lower our target multiple to 13x from 14x reflecting lower returns. Increasing activity and bottoming of pricing in line pipe provides a positive read through for NOW Inc. as the shift in mix is a company specific issue for MRC.”
MRC Global (NYSE:MRC) traded down 2.57% on Monday, hitting $25.02. 887,906 shares of the company’s stock traded hands. MRC Global has a 52-week low of $23.95 and a 52-week high of $32.70. The stock’s 50-day moving average is $27.83 and its 200-day moving average is $27.89. The company has a market cap of $2.553 billion and a price-to-earnings ratio of 21.22.
MRC Global (NYSE:MRC) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.42 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.42. The company had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.41 billion. During the same quarter in the previous year, the company posted $0.43 earnings per share. The company’s revenue for the quarter was up 18.2% on a year-over-year basis. Analysts expect that MRC Global will post $1.71 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on MRC. Analysts at Zacks reiterated a “neutral” rating on shares of MRC Global in a research note on Wednesday, June 18th. They now have a $30.00 price target on the stock. Analysts at BB&T Corp. raised their price target on shares of MRC Global to $34.00 in a research note on Thursday, June 5th. They now have a “buy” rating on the stock. One analyst has rated the stock with a hold rating and nine have given a buy rating to the company. The company has a consensus rating of “Buy” and an average target price of $32.89.
MRC Global Inc, formerly known as McJunkin Red Man Holding Corporation is a holding company. The Company is the distributor of pipe, valves and fittings (NYSE:MRC) and related products and services to the energy industry.
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