UPDATE: Dahlman Rose Upgrades Cameron International to Buy on Acqusition
Dahlman Rose raised its rating on Cameron International (NYSE: CAM) fromHold to Buy and raised its price target from $56 to $61.
Dahlman Rose commented, "Cameron and Schlumberger today announced that they are combining their subsea-related businesses into a joint venture that Cameron would manage with a 60% interest. … There are two major benefits to Cameron from this transaction: first, the product lines and services that Schlumberger is contributing (subsea loading string services, subsea processing and boosting, subsea multiphase meters and measurement systems, subsea surveillance, power and controls, flow assurance, and marine swivel stacks and fluid transfer systems), but in our view, even more importantly, Schlumberger's unparalleled understanding of the reservoir along with the combines company's systems offering should lead to substantially higher reservoir recovery."
Cameron International closed at $50.81 on Wednesday.
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