Credit Suisse Upgrading Cameron International

Credit Suisse is upgrading shares of Cameron International Corp. CAM to Outperform and is raising its price target to $73 from $60. In a note to clients, Credit Suisse writes, "A quarter so good that we upgrade CAM even after it has outperformed the OSX by 1,100 bps over the last two days? Yes, as the breadth of orders in the quarter revealed strengths and helped ease concern about some potential weaknesses. The strengths include (1) scope of opportunity and strength of relationships in engineered valves; (2) size of drilling (BoP) aftermarket; (3) inadequately understood potential in Processing, (4) the potential to maintain deepwater BoP OEM market share, and (5) the intangible benefit of a strong cross-selling effort. We raised medium-term revenue growth outlooks in several segments, lifting peak earnings potential (in 2016) to $6.95 from $5.85 and FCF in 2011E-2016E to $6.9B from $6.1B." Shares of CAM closed at $55.94 on Friday.