Story updated at 10 a.m. to reflect market activity.
FMC Technologies gained 1% to $57.72 in morning trading.
The firm set a price target of $75 for the company. BMO analysts Alan Laws and Peyton Mason said the upgrade is due to FMC's volatility declining and its profitability rising.
"In our view, FTI's operational indigestion from the substantial growth in subsea equipment orders over past few years is subsiding and competitive dynamics are decreasing as all players sit on record backlogs," the analysts wrote. "We have until now shied away from FTI's secular growth story, primarily on a relative valuation basis but also given operational volatility of the past few years. While still not deep value, its multiple no longer gives us a nose bleed and we have greater confidence in its operational execution and, more importantly, its profitability and earnings growth potential."
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Separately, TheStreet Ratings team rates FMC TECHNOLOGIES INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate FMC TECHNOLOGIES INC (FTI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."