- Cameron (CAM -0.8%) and Oceaneering (OII -1.9%) are upgraded to Buy from Accumulate, with respective $58 and $60 price targets, at Global Hunter, even as it downgrades land-based drilling services provider Patterson-UTI.
- The firm says its CAM upgrade is based on the company's margin resilience, boosting leadership and leverage to an eventual North American recovery, and expects margins to continue to hold up relatively well in its largest subsea and drilling segments due to CAM's focus on improving execution even prior to the downturn.
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OII shares have shed more than 30% since early April as WTI has drifted below $50/bbl, a level the firm believes is not sustainable; OII eventually should rally with oil prices, the firm says, preferring to be buyers when the screen is red.