UPDATE: Deutsche Bank Downgrades Transocean to Sell on Downtime Increase
Deutsche Bank downgraded Transocean (NYSE: RIG) from Hold to Sell and maintained a $49.00 price target.
Deutsche Bank said, "While RIG has made significant progress in addressing its myriad issues, the market and its fleet may increasingly be working against it. Despite a recent update on downtime, yesterday's fleet status report showed a 7% increase in '13 downtime and the first estimate of 2014 downtime is up an additional 5% vs. 2013 (despite a shipyard stay being pulled into '13 and ongoing efforts to improve revenue efficiency). Meanwhile, costs are rising even as rates are flattening. With greater visibility on its Macondo liability and greater clarity on the demands of activist Carl Icahn, most catalysts have been realized as well."
Transocean closed at $57.06 on Thursday.
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