Global Hunter Securities Downgrades FMC Technologies (FTI) to Neutral; Fairly Valued After Review of Subsea
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Price: $79.81 +1.53%
Rating Summary:
25 Buy, 18 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
25 Buy, 18 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Global Hunter Securities downgraded FMC Technologies (NYSE: FTI) from Buy to Neutral, maintains price target of $54.00.
Analyst, Brian Ulmer, said, "We believe that the subsea market will remain very strong and do not doubt the strong secular backdrop to its subsea production and processing business. However, as only ~55% of its operating income comes from subsea, we think the stock is fairly valued. This is not a diatribe of FTI's business as it clearly is the leader in subsea. However, the fundamentals of the subsea business hardly display oligopolistic traits as competition remains fierce and pricing power currently is in favor of the purchaser. With that in mind, we believe paying 31x 2012 and 25x 2013 estimated EPS for subsea is the valuation pinnacle and the stock will be hard pressed to outperform its peer group."
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 $54.01 yesterday.
Analyst, Brian Ulmer, said, "We believe that the subsea market will remain very strong and do not doubt the strong secular backdrop to its subsea production and processing business. However, as only ~55% of its operating income comes from subsea, we think the stock is fairly valued. This is not a diatribe of FTI's business as it clearly is the leader in subsea. However, the fundamentals of the subsea business hardly display oligopolistic traits as competition remains fierce and pricing power currently is in favor of the purchaser. With that in mind, we believe paying 31x 2012 and 25x 2013 estimated EPS for subsea is the valuation pinnacle and the stock will be hard pressed to outperform its peer group."
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 $54.01 yesterday.
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