"We expect McDermott shares to remain range bound reflecting impaired global upstream oil and gas capital spending, elevated execution risks, a challenging project tender environment and volatile, but upward trending crude oil prices," Sterne Agee analysts said in an investor note.
McDermott's new management has "brought much-needed discipline and focus during the past 30 months to execution and capital allocation," the firm added.
In addition, Crude oil (WTI) is up by 0.31% to $48.23 per barrel as Brent crude is climbing by 0.17% to $48.43 per barrel, CNBC reports this morning.
Yesterday, the price of oil declined due to concerns that the global supply would outpace demand. Today, oil prices are rebounding as U.S. data is expected to show a shrinking supply overhang, Reuters reports.
Houston-based McDermott is a provider of integrated engineering, procurement, construction and installation (EPCI) and module fabrication services for upstream field developments.
Separately, TheStreet Ratings rated McDermott Intl. as a "sell" with a score of D+.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
This is driven by a few notable weaknesses, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks that are covered.
Among the areas TheStreet Ratings feels are negative, one of the most important has been poor profit margins.
You can view the full analysis from the report here: MDR