UPDATE: Societe Generale Downgrades Cameron International Corporation to Hold, Lowers PT as Timing of Material Margin Recovery is Now Uncertain

In a report published Monday, Societe Generale analyst Edward Muztafago downgraded the rating on <,strong>Cameron International Corporation

from Buy to Hold, and lowered the price target from $81.00 to $61.00. In the report, Societe Generale noted, “CAM's $0.81 3Q'13 eps fell short of the $0.83 consensus, and SG's $0.84 est, driven by lingering material headwinds in DPS, initial dilutive R&D ramp-up for One Subsea and V&M project timing. These issues also led to a material Q4'14 eps guide down, $0.95-$1.00 vs. the $1.11 consensus and our $1.12 est, and should weigh heavily on 2014. Potential for meaningful margin expansion in 2014 is now in question. We don't see much downside risk from here, but we believe that investors will place CAM in the penalty box until compelling margin expansion outlook becomes more visible.” Cameron International Corporation closed on Friday at $53.25.