Transocean Downgraded at Citi as Macondo LP Process 'Stalled'
Shares of Transocean (NYSE: RIG) were earlier downgraded from Buy to Neutral by a Citi analyst. The analyst's price target was raised from $52 to $63.
Citi analyst Robin Shoemaker reduced hos 2013-2015 EPS estimates below the Street consensus, citing the unlikeliness of dormant rigs being reactivated on "not strong enough" market demand.
Shoemaker also attributed the downgrade to a limited partnership deal with the Gulf's Macondo well which "appears to be stalled". Shoemaker now believes the limited partnership option is unlikely to be pursued.
Shares of Transocean opened 1.7 percent lower but regained the loss to bounce off Monday's close of $48.24. The stock last traded at $48.23, down just one penny for the session.
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