Transocean Upgraded by Zacks Investment Research to "Neutral" (RIG)
20.05.12
Transocean Upgraded by Zacks Investment Research to “Neutral” (RIG)
Transocean (NYSE: RIG) was upgraded by Zacks Investment Research from an “underperform” rating to a “neutral” rating in a report issued on Wednesday. They currently have a $51.00 price target on the stock.
Zacks’ analyst wrote, “We are upgrading shares of Transocean to Neutral from Underperform following a court ruling that absolves the company of some of the cleanup cost related to the Deepwater Horizon incident. We acknowledge that operational issues – such as the decline in utilization rates and high operating costs have held the company back. We also remain worried about the offshore driller’s high debt and chances of an imminent dividend cut. However, with its technologically-advanced and versatile offshore drilling fleet, strong backlog and considerable pricing power, the company offers an unmatched level of earnings and cash flow visibility. Nevertheless, we expect Transocean shares to remain soft until it fully works its way through claims related to the BP oil spill.”
Source: Web Inquirer