Loop Capital has revised its price target for MRCGlobal (MRC, Financial), lowering it to $16 from the previous $17, while maintaining a Buy rating on the company's stock. This adjustment comes after MRCGlobal's first-quarter pre-announcement, in which the company anticipated stronger-than-expected sales growth.
The optimistic sales forecast is largely driven by significant performance gains in the U.S. downstream market, bolstered by vigorous turnaround activities. Additionally, MRCGlobal showed solid progress in generating operating cash flow.
Despite these positive growth indicators, the decision to reduce the price target reflects a cautious stance in the current market environment, which exhibits a shift towards risk aversion.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for MRC Global Inc (MRC, Financial) is $15.25 with a high estimate of $17.00 and a low estimate of $13.00. The average target implies an upside of 40.55% from the current price of $10.85. More detailed estimate data can be found on the MRC Global Inc (MRC) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, MRC Global Inc's (MRC, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MRC Global Inc (MRC, Financial) in one year is $11.52, suggesting a upside of 6.18% from the current price of $10.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MRC Global Inc (MRC) Summary page.