Citi Has $23 Target On McDermott International

Citi Investment Research has a Buy rating and a $23 price target on McDermott International Inc MDR. In a note sent to investors Citi writes, "Since the start of regular way trading on 8/2/2010, MDR has generated a total return of 59%, which compares favorably to the total return of 22% and 11% for the E&C peer group and the S&P 500, respectively (i.e. over the same time period). Even so, we believe the investment proposition remains favorable and further upside is possible due to: 1) market-leading exposure to one of the most favorable E&C end markets (i.e. Oil & Gas with a particular focus on Offshore), 2) geographically diversified and strong client base in developing economies (i.e. supply/demand dynamics should vary between regions), and 3) 12% valuation discount relative to the select peer group." Shares of MDR gained 10 cents yesterday to close at $19.43, a gain of 0.5%.