UPDATE: Jefferies Downgrades Transocean to Hold; M&A Needed to Accelerate Growth

Jefferies downgraded Transocean RIG from Buy to Hold and raised the price target from $54.00 to $57.00. Jefferies analyst Brad Handler wrote, "RIG has come a long way from an operational standpoint. Shares are, however, nearly discounting a structural recovery and we downgrade to Hold. With the structural improvement, the company is at a crossroads. RIG can accept slower growth and return cash aggressively, but total longer term returns would benefit from stronger longer term growth, in our view, and we think M&A is the preferred way to accelerate that growth." Transocean closed at $53.76 on Wednesday.