Cameron International Corporation (CAM): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


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We are retaining our Neutral recommendation on Cameron International Corp. with a target price of $51.00. The company has a diversified product portfolio, specialty service capabilities and proprietary technological expertise. Other positives for Cameron include a strong backlog position, growing international operations and a favorable perspective on subsea activity levels. However, according to Cameron's current valuation, we believe that shareholders should wait for a better entry point before accumulating shares. Moreover, with markets competitive and pricing weak, we see no visible catalyst in Cameron's business that could significantly push the stock price higher.


Houston, TX-based Cameron International Corporation (CAM), previously known as Cooper Cameron Corporation, is a leading manufacturer of pressure control equipment used in onshore, offshore, and subsea applications for oil and gas drilling, production, and transmission. Following the change in the corporate name in May 2006, the company re-branded its three business segments into Drilling & Production Systems (DPS), formerly the Cameron segment Valves & Measurement (V&M), formerly the Cooper Cameron Valves segment and Process & Compression Systems (PCS), formerly the Cooper Compression segment.

The products of the DPS segment (accounting for 61% of the company's total EBITDA in 2013) include surface and subsea production systems (the so-called Christmas Trees), blowout preventers as well as drilling and production control systems. DPS products are marketed under the brand names CAMERON, W-K-M, MCEVOY, and WILLIS. Additionally, DPS manufactures elastomers (used in pressure and flow control equipment) and other petroleum industry applications. The DPS segment also handles the petroleum, petrochemical, rubber molding, and plastics industries. The V&M segment (28%) provides valves and related systems used in pressure control and flow of oil and gas from the wellhead through pipelines to refineries and petrochemical plants. The PCS segment's (11%) products include reciprocating and centrifugal compressors used in multiple oil and gas applications, such as production, storage, withdrawal, processing, and transmission.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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