McDermott International, Inc. (NYSE:MDR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Friday.

According to Zacks, “We are upgrading our investment thesis on McDermott to ‘Hold’ following its strong Q3 results on the back of robust project execution. The company's revenues in the quarter rose about 72% year-over year on increased activity levels. We appreciate the company’s broad product portfolio, diversified geographical footprint, good market position and strong relationship with national oil companies.  McDermott’s healthy balance sheet provides it with ample financial flexibility amid the volatile industry environment to tap on the growth opportunities. All these positives are also reflected in MDR’s impressive earnings surprise history and strong price performance. However, with a considerable portion of MDR’s current backlog associated with offshore operations, it remains susceptible to the pricing weakness. Consequently, until the external environment challenges subside, we see limited upside for MDR shares.”

MDR has been the subject of several other research reports. BidaskClub lowered McDermott International from a “sell” rating to a “strong sell” rating in a research report on Thursday, August 17th. KeyCorp reiterated a “hold” rating on shares of McDermott International in a research report on Friday, October 6th. Deutsche Bank AG dropped their price target on McDermott International from $6.50 to $5.25 and set a “hold” rating for the company in a research report on Tuesday, October 24th. Scotiabank reiterated a “buy” rating and issued a $9.00 price target on shares of McDermott International in a research report on Wednesday. Finally, TheStreet upgraded McDermott International from a “c” rating to a “b-” rating in a research report on Tuesday, July 25th. One research analyst has rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $8.01.

McDermott International (NYSE:MDR) last released its quarterly earnings results on Wednesday, November 1st. The oil and gas company reported $0.33 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.19 by $0.14. The company had revenue of $958.50 million during the quarter, compared to analyst estimates of $977.28 million. McDermott International had a return on equity of 9.56% and a net margin of 5.25%. The firm’s revenue was up 71.6% on a year-over-year basis. During the same quarter last year, the business posted $0.09 earnings per share.

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Large investors have recently made changes to their positions in the business. Private Advisor Group LLC purchased a new position in shares of McDermott International during the second quarter valued at approximately $106,000. Meeder Asset Management Inc. boosted its position in shares of McDermott International by 234.0% during the third quarter. Meeder Asset Management Inc. now owns 16,144 shares of the oil and gas company’s stock valued at $117,000 after buying an additional 11,310 shares during the period. Everence Capital Management Inc. purchased a new position in shares of McDermott International during the second quarter valued at approximately $116,000. HighTower Advisors LLC boosted its position in shares of McDermott International by 13.0% during the first quarter. HighTower Advisors LLC now owns 17,396 shares of the oil and gas company’s stock valued at $117,000 after buying an additional 2,000 shares during the period. Finally, World Asset Management Inc purchased a new position in shares of McDermott International during the second quarter valued at approximately $134,000. Institutional investors and hedge funds own 85.09% of the company’s stock.

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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Analyst Recommendations for McDermott International (NYSE:MDR)

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