Guggenheim Securities Reiterates Buy on Cameron International Looking Beyond the 3Q13 Print
In a report published Wednesday, Guggenheim Securities analyst Michael LaMotte reiterated a Buy rating and $75.00 price target on Cameron International Corporation (NYSE: CAM).
In the report, Guggenheim Securities noted, “We have highlighted Cameron (CAM, BUY, $63.74) ) as a favorite idea into year-end on the expectation that the stock would re-rate around 3Q13 earnings, as: 1) investor concerns of further significant revisions to 2013 and 2014 estimates dissipate, 2) the margin expansion thesis—which has eluded CAM since it reported 4Q12 EPS—is restored, and 3) investor confidence in an aggressive share repurchase program grows. Importantly, we do not expect the rerate to be just a short-term phenomenon, as continued strength in subsea orders through 2014 should provide ever greater EPS visibility into 2015 and help push the stock towards our 12-month target price of $75. In our view, restoring confidence in the subsea business is critical to turning investor sentiment around, given that subsea has been a principle source of EPS disappointment in 2013.”
Cameron International Corporation closed on Tuesday at $63.74.
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