UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Cameron International Corporation
In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Cameron International Corporation (NYSE: CAM), and raised its price target from $65.00 to $70.00.
BMO Capital Markets noted, “Cameron (CAM) reported operating EPS of 95c, in line with our/consensus expectations. Revenues were slightly better than expected with V&M and PCS carrying the ball, but margins were below forecast (see p. 2), helped by a lower tax rate. That said, it wasn't 4Q earnings that mattered as much as the surge in inbound orders, which reached $3.4B in 4Q on the back of a record wave of BOP (21 deepwater stacks) and Surface orders in the DPS segment. The record backlog of $8.6B provides considerable visibility to CAM's 2013 EPS forecast of $3.70-$3.90. While this forecast was below our $4.10 and consensus of $4.04, comments around 2013 expected orders exceeding 2012's $10.9B were probably more important, adding increased certainty to CAM's multiyear earnings growth story. Still a top idea for us.”
Cameron International Corporation closed on Thursday at $63.31.
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