FBR Capital Upgrades FMC Technologies (FTI) to Market Perform

FBR Capital upgraded FMC Technologies (NYSE: FTI) from Underperform to Market Perform with a price target of $31.00 on valuation.

Analyst Thomas Curran commented, "Following its 2Q15 earnings release after the close on July 21 and call on July 22, the stock declined 9.9% yesterday, significantly underperforming the S&P 500 and OSX, which dropped 0.2% and 1.7%, respectively. We believe the stock's severe selloff was primarily a reaction to management's update to its initial 2016 visibility on subsea technologies, which confirmed, as our bearish thesis has held, that hopes were too high for the division's EBIT margin and services revenue next year. However, at $32.76, we think the stock is now discounting more realistic expectations for both financial metrics and is within 5.4% of our $31 price target. Thus, we believe risk/reward has become fairly balanced, and we are upgrading our rating from Underperform to Market Perform. Our FY15/FY16 EPS estimates and price target remain the same. We could potentially become more constructive on the stock given (1) signs that the subsea complex's mission to structurally boost project economics will succeed faster and/or more than expected; and/or (2) a cheaper valuation."

For an analyst ratings summary and ratings history on FMC Technologies click here. For more ratings news on FMC Technologies click here.

Shares of FMC Technologies closed at $32.76 yesterday.

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