Cameron (CAM) is the Sleeper in Oil Services -Barron's

Cameron International (NYSE: CAM) was discussed in an article in this weekend's edition of Barron's. The article calls Cameron "the sleeper" in the oil services industry as it trades at just 19x FY08 earnings estimates and is up only 5% year-to-date. Barron's compares Cameron's numbers to that of FMC Technologies (NYSE: FTI), which currently trades at 25x and is up more than 30% year-to-date.

Justifying its sleeper call, Barron's cites a Morgan Stanley analyst who is bullish on shares of Cameron: the analyst has a Buy rating and $65 price target, which represents upside of about 30% from current levels (trading around $52 today). Barron's likes Cameron's "dual exposure to subsea and surface" services, which should keep fundamentals strong over the next several years. Quoted in the article, the Morgan Stanley analyst believes Cameron could do "materially better" than its previously issued guidance of $2.55 for FY08. The Street's FY08 estimate is currently $2.59.

The Barron's article also points out that Ken Heeber, considered a legendary mutual fund manager by much of Wall Street, has been recently buying shares of Cameron for his fund CGM Capital Development.

Cameron International Corporation provides flow equipment products, systems, and services to oil, gas, and process industries worldwide. [BCS]

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