McDermott International, Inc. (MDR) Upgraded to Strong-Buy by Zacks Investment Research
McDermott International, Inc. (NYSE:MDR) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Thursday. The firm currently has a $8.50 price target on the oil and gas company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 10.68% from the company’s previous close.
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.”
Other analysts also recently issued research reports about the company. Scotiabank raised McDermott International from a “sector perform” rating to a “buy” rating and set a $9.00 price target on the stock in a research note on Thursday, May 25th. Deutsche Bank AG reissued a “hold” rating and issued a $7.00 price target (down previously from $8.00) on shares of McDermott International in a research note on Saturday, April 22nd. ValuEngine downgraded McDermott International from a “buy” rating to a “hold” rating in a research note on Tuesday, June 6th. BidaskClub raised McDermott International from a “hold” rating to a “buy” rating in a research note on Thursday, July 6th. Finally, Scotia Howard Weill raised McDermott International from a “sector perform” rating to a “sector outperform” rating in a research note on Thursday, May 25th. Six investment analysts have rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average target price of $7.89.
McDermott International (MDR) traded down 3.26% on Thursday, reaching $7.43. The company had a trading volume of 1,607,968 shares. McDermott International has a 12 month low of $4.41 and a 12 month high of $8.33. The stock has a market capitalization of $2.11 billion, a price-to-earnings ratio of 37.15 and a beta of 1.38. The firm has a 50 day moving average price of $6.85 and a 200-day moving average price of $6.97.
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. The business had revenue of $519.40 million for the quarter, compared to the consensus estimate of $689.30 million. McDermott International had a return on equity of 4.75% and a net margin of 2.40%. The firm’s revenue was down 28.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.13 EPS. Analysts forecast that McDermott International will post $0.42 earnings per share for the current fiscal year.
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Institutional investors have recently bought and sold shares of the company. Tudor Investment Corp Et Al acquired a new position in McDermott International during the fourth quarter worth approximately $246,000. Guggenheim Capital LLC boosted its position in McDermott International by 114.2% in the fourth quarter. Guggenheim Capital LLC now owns 197,658 shares of the oil and gas company’s stock worth $1,461,000 after buying an additional 105,371 shares during the last quarter. AQR Capital Management LLC boosted its position in McDermott International by 39.1% in the fourth quarter. AQR Capital Management LLC now owns 605,703 shares of the oil and gas company’s stock worth $4,476,000 after buying an additional 170,149 shares during the last quarter. Norges Bank acquired a new position in McDermott International during the fourth quarter worth approximately $14,152,000. Finally, Quadrature Capital Ltd acquired a new position in McDermott International during the fourth quarter worth approximately $507,000. Institutional investors and hedge funds own 73.81% of the company’s stock.
About McDermott International
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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