Transocean LTD Receives a Hold from Jefferies

By Austin Angelo

Jefferies analyst Eduardo Royes reiterated a Hold rating on Transocean LTD (NYSE: RIG) yesterday and set a price target of $11. The company’s shares closed yesterday at $9.87.

Royes noted:

“Opex continues to impress—although some of the reduction likely reflects deferred maintenance, we lower our overall daily per rig cost ‘starting point’ again. We raise medium-term estimates on this (and with help from lower capex, our PT rises to $11), but remain mindful of the possible bigger step-up in opex from even a modest ‘recovery’ year in 2018.”

According to, Royes is a 1-star analyst with an average return of -13.7% and a 16.7% success rate. Royes covers the Basic Materials sector, focusing on stocks such as Diamond Offshore Drilling, Hercules Offshore, and Atwood Oceanics.

Currently, the analyst consensus on Transocean LTD is Hold and the average price target is $9.13, representing a -7.5% downside.

In a report issued on October 26, Morgan Stanley also upgraded the stock to Hold.

The company has a one year high of $15.54 and a one year low of $7.67. Currently, Transocean LTD has an average volume of 14.68M.

Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is neutral on the stock. Most recently, in September 2015, Lars Sjobring, the SVP & GC of RIG sold 5,324 shares for a total of $76,666.

Transocean Ltd. engages in the provision of offshore contract drilling services for oil and gas wells. It specializes on global offshore drilling business with a particular focus on deepwater and harsh environment drilling services. The company was founded in 1954 and is headquartered in Vernier, Switzerland.