Pritchard Equity Reiterates Buy On McDermott International (MDR)

Pritchard Equity Research is reiterating its Buy rating and $18 price target on McDermott International MDR after the company reported strong earnings results yesterday after the bell. In the research note, Pritchard Equity says, "Following MDR’s strong Q2 2010 results and conference call, we are reiterating our BUY recommendation and $18 price target as the company is poised to capture upstream work and grow earnings as a focused upstream fabrication and installation contractor. Management commented that they currently have roughly $4 billion worth of bids outstanding and an additional $14 billion worth of work on its ‘focus list’. Despite several IOC’s indication that Gulf of Mexico projects are moving forward as scheduled, management refrained from being overly optimistic on the timing of awards. We are modeling $1.5 billion in orders through year-end and large bookings to hit in Q1 2011 at $1.4 billion leading to $3.8 billion in total orders in 2011." Shares of McDermott International closed at $13.48 yesterday.