Goldman Sachs Resumes Coverage on FMC Technologies (FTI) at Buy; Growth in Tree Orders

Goldman Sachs resumes coverage on FMC Technologies (NYSE: FTI) with a Buy. PT $57.00.

Analyst, Waqar Syed, said, "Tree orders were on a secular uptrend, but the financial crisis of 2008/2009 and the Macondo accident in 2010 caused annual tree orders to fall 25% from an average 449 trees per year in the 2006-2008 time period to 334 trees per year in the 2009-2011 time period. Quest Offshore and our own analysis now show a major uptick in tree orders. According to Quest Offshore, tree orders are likely to pick-up by 87% on an annual basis during the 2012-2014 time period, averaging at 625 trees per year."

Other highlighted positives include: 1) Tree pricing on verge of increase; 2) stock buybacks should provide upside to l-t EPS estimate; and 3) very strong cash flow.

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 $46.06 yesterday.

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