Transocean Coverage Initiated by Analysts at Wunderlich (RIG)
Equities research analysts at Wunderlich started coverage on shares of Transocean (NYSE:RIG) in a research note issued to investors on Wednesday, TheFlyOnTheWall.com reports. The firm set a “hold” rating and a $51.00 price target on the stock. Wunderlich’s target price suggests a potential upside of 12.53% from the company’s current price.
The analysts wrote, “We are initiating coverage of Transocean ltd (RIG) with a Hold rating and a target of $51, which represents a 5.4x 2015 EV/EBITDA multiple. We believe current consensus estimates for 2014 and 2015 will likely be reduced as the result of downtime additions and lower-than-estimated dayrate revisions as contracts roll, particularly relating to some of the company’s 4th/5th generation deepwater assets. Transocean has done an excellent job in the past 18 months of high grading its fleet by divesting of older lower spec assets, including its standard jack-up business, and by adding high spec newbuild rigs, including four drillships. We believe increasing the company’s dividend is a positive but, at current levels, more attractive opportunities exist elsewhere in the offshore drilling space.”
A number of other analysts have also recently weighed in on RIG. Analysts at Susquehanna cut their price target on shares of Transocean (NYSE:RIG) from $55.00 to $53.00 in a research note to investors on Tuesday, August 20th. They now have a “neutral” rating on the stock. Separately, analysts at UBS AG downgraded shares of Transocean (NYSE:RIG) from a “buy” rating to a “neutral” rating in a research note to investors on Tuesday, August 20th. They now have a $49.00 price target on the stock, down previously from $63.00. Finally, analysts at Sanford C. Bernstein cut their price target on shares of Transocean (NYSE:RIG) from $61.00 to $57.00 in a research note to investors on Friday, August 16th. They now have an “outperform” rating on the stock.
Two investment analysts have rated the stock with a sell rating, sixteen have given a hold rating and twelve have given a buy rating to the company. Transocean has a consensus rating of “Hold” and an average price target of $54.09.
Shares of Transocean (NYSE:RIG) traded up 0.19% on Wednesday, hitting $45.404. 2,049,219 shares of the company’s stock traded hands. Transocean has a 52-week low of $43.65 and a 52-week high of $59.50. The stock has a 50-day moving average of $47.54 and a 200-day moving average of $50.28. The company has a market cap of $16.364 billion and a price-to-earnings ratio of 23.41.
Transocean (NYSE:RIG) last announced its earnings results on Wednesday, August 7th. The company reported $1.08 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.08. The company had revenue of $2.40 billion for the quarter, compared to the consensus estimate of $2.40 billion. During the same quarter in the previous year, the company posted $0.72 earnings per share. The company’s revenue for the quarter was up 2.9% on a year-over-year basis. On average, analysts predict that Transocean will post $4.13 earnings per share for the current fiscal year.
Transocean Ltd. (NYSE:RIG) is an international provider of offshore contract drilling services for oil and gas wells.
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