- McDermott (NYSE:MDR) rose 5.5% in today's trade after Imperial Capital analysts upgraded the shares to Outperform from In-Line with a $6 price target, raised from $4, as the firm believes MDR's prospects are improving despite the energy market slowdown.
- Imperial expects MDR to benefit from growing demand for offshore oil and gas construction services, given the company's strong asset base and attractive geographic footprint; contract awards are beginning to gain momentum and liquidity "appears sufficient to supports MDR's turnaround strategy."
- Although the collapse in oil and gas prices might suggest a bearish outlook for offshore construction activity, the firm says recent evidence suggests MDR's award prospects are starting to pick up, and could gain further traction if commodity prices continue to stabilize.