Morgan Stanley Downgrades Cameron International Corp. to Equal Weight (CAM)
Cameron International Corp. (NYSE:CAM) was downgraded by Morgan Stanley from an “overweight” rating to an “equal weight” rating in a research note issued on Tuesday, Analyst Ratings Network reports. They currently have a $66.00 price objective on the stock. Morgan Stanley’s price objective suggests a potential upside of 14.48% from the stock’s previous close.
The analysts wrote, “We expect the company’s DPS margins to decline 60bps in 2014 vs. our prior expectation of a 20bps increase,” the report noted. “We expect the decline to be driven by (i) delivery bottlenecks on record rig equipment backlog as CAM struggles to bring new capacity online fast enough, (ii) sales from lower-margin subsea business growing faster than the company’s higher-margin surface and drilling business in 2014, and (iii) our reduced forecast of subsea market growth for 2014 and 2015 of 8.5%/8.2%, down from our prior forecast 12.7%/14.8%. Our long-term 2013-20 subsea equipment growth rate is intact at 14.6% versus 5.5% for overall E&P global capex, so we see no need for multiple contraction for subsea and equipment names given our continued outlook for long-term growth at almost 3x the overall capex growth outlook.” Some highlights from the report included:-”Lower NAm infrastructure spend to further delay a recovery in V&M.”-”We remain constructive on increased buybacks.”
Several other analysts have also recently commented on the stock. Analysts at ISI Group downgraded shares of Cameron International Corp. from a “strong-buy” rating to a “neutral” rating in a research note to investors on Monday. Separately, analysts at RBC Capital downgraded shares of Cameron International Corp. from a “top pick” rating to an “outperform” rating in a research note to investors on Wednesday, January 8th. They now have a $68.00 price target on the stock, up previously from $64.00. Finally, analysts at Cowen and Company downgraded shares of Cameron International Corp. from an “outperform” rating to a “market perform” rating in a research note to investors on Tuesday, January 7th. They now have a $62.00 price target on the stock, down previously from $68.00. One analyst has rated the stock with a sell rating, eleven have issued a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. Cameron International Corp. presently has an average rating of “Buy” and an average target price of $67.48.
Cameron International Corporation, provides flow equipment products, systems and services to worldwide oil, gas and process industries.
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