Coverage on (MCGC) (ATVI) (MYRG) (PACB) (SREV) Reiterated

Coverage on MCG Capital Corporation (NASDAQ:MCGC), Activision Blizzard (NASDAQ:ATVI), MYR Group (NASDAQ:MYRG), Pacific Biosciences of California, Inc. (NASDAQ:PACB) and ServiceSource International (NASDAQ:SREV) reiterated by analysts.

FBR Capital Markets analysts reiterated an "Outperform" rating on MCG Capital Corporation (MCGC). They have a price target of $7 on the company.

Deutsche Bank (NYSE:DB) analysts reiterated a "Buy" rating on Activision Blizzard (ATVI). They have a price target of $15 on the company.

FBR Capital Markets analysts reiterated an "Outperform" rating on MYR Group (MYRG).

Deutsche Bank analysts reiterated a "Buy" rating on Pacific Biosciences of California, Inc. (PACB). They have a price target of $16.50 on the company.

Deutsche Bank analysts reiterated a "Buy" rating on ServiceSource International (SREV). They have a price target of $22 on the company, up from $20.

FBR's Confidence in MYR Group (NASDAQ:MYRG) Growing

Until there's more visibility, FBR Capital says they're not going to change their estimates on MYR Group (NASDAQ:MYRG) for 2011, but their confidence in the company is growing and they say they anticipate the probability of raising estimates going forward.

FBR said, "We are not changing our 2011 estimates until we have greater accuracy to forecast the project start dates. However, we note that our confidence is higher now and believe there is a high likelihood for an upward revision to our 2011 projections. As such, given the improved visibility over the next few years and the potential for additional awards near term, we are raising our price target to $25, or 10x 2011 EV/EBITDA, and believe the shares could reach $30, or 12x EV/EBITDA, if backlog grows further."

FBR Capital reiterates an "Outperform" on MYR Group, which closed Tuesday at $21.80, up $2.01, or 10.16 percent. FBR raised their price target on them from $22 to $25.

Fluor (NYSE:FLR) Jacobs Engineering (NYSE:JEC), URS (NYSE:URS) Should Give Solid Returns in 2011

Believing the recent rebound in engineering and construction stocks is sustainable, FBR Capital has their strongest picks in the sector as Fluor (NYSE:FLR) Jacobs Engineering (NYSE:JEC) and URS (NYSE:URS).

FBR:

Engineering & Construction (E&C): "Stocks have started to rally over the past month (+15% since October 29 versus the S&P at +5%), which we believe is the beginning of a much longer cycle. Backlog has started to improve. We expect the oil & gas market to redevelop, the domestic power market to witness opportunities, federal spending to be constant, and state/local to remain unclear. Finally, strong balance sheets should limit downside risk and possibly enhance EPS growth through share repurchases and M&A. As our 2010 FBR Top Pick, Fluor (Outperform) is up 39% year to date, we believe Jacobs Engineering (Outperform) and URS Corp. (Outperform) should provide solid returns in 2011.

Specialty Contracting. "In 2011, we expect revenue growth to redevelop broadly and be complemented by improving profit margins. Emerging trends include: improving telecommunications (wireless and wireline) capex, a pickup in electric transmission coupled with a more stable electric distribution market, and a steadily improving economy that should eventually lead to a pickup in the housing market and commercial construction. M&A activity and share buybacks should also enhance growth in 2011. Our favorite small-cap specialty contractors for 2011 include Dycom Industries (NYSE:DY)(Outperform), EMCOR Group (NYSE:EME)(Outperform), MYR Group (Nasdaq:MYRG)(Outperform), and UniTek (Nasdaq:UNTK)(Outperform)."

Flour closed Thursday at $63.15, up $1.84, or 3.00 percent. Jacobs closed at $42.48, up $0.42, or 1.00 percent. URS ended the session at $43.09, up $0.53, or 1.25 percent.

Fluor (NYSE:FLR) Jacobs Engineering (NYSE:JEC) and URS (NYSE:URS)