Sterne Agee Reiterates Buy, $57 Target on Cameron

Sterne Agee maintains its Buy rating and $57 target price on Cameron

as it lowers EPS estimates to reflect lower margins. Sterne Agee says, "We are lowering our 2012 EPS estimate for Cameron to $3.40 from $3.55 owing to lower margins. The lower margins are mainly due to a larger drag on margins from the LeTourneau acquisition and a bit more of a conservative approach for near-term margin improvement. However, as we look at the large subsea awards that are likely over the next several quarters, we do expect CAM to secure significant new contracts for subsea equipment which should push the shares higher." CAM closed at $51.41 per share on Wednesday.