Loop Capital starts MRC Global at Buy on improvement in profitability

As reported yesterday, Loop Capital analyst Chris Dankert initiated coverage of MRC Global with a Buy rating and $14 price target. The company has demonstrated marked improvement in cross-cycle profitability despite the notably lower absolute sales, with sales mix shift toward gas utility providing a margin lift and helping smooth results across the cycle, the analyst tells investors in a research note. Loop added that MRC’s Investment in LNG infrastructure has been providing an additional tailwind, while the IRA tax incentives are expected to fuel carbon capture projects into the second half of 2024 and beyond.