Global Hunter Securities Reiterates Buy Rating, $56 PT on Transocean

In a report published Friday, Global Hunter Securities reiterated its Buy rating and $56.00 price target on Transocean Ltd.

. Global Hunter noted, “Execution has materially improved in recent quarters as evidenced by the revenue utilization figure posted in Q2. It appears as though RIG has made the proper modifications to its supply chain and capital spares program, along with the necessary upgrades to its high-spec rigs to help push it closer to its true earnings power. While as we look out to 2014 and beyond when newbuilds hit the market, we believe its peers' earnings profiles look more attractive, but in the interim RIG leads the group with near-term contract catalysts and re-pricing leverage. This and increased conviction in its ability to execute should allow for multiple expansion and share price appreciation.” Transocean Ltd. closed on Thursday at $47.20.