Citigroup Upgrades Transocean, Rig Market Trough to be V-Shaped

On Wednesday, Citigroup upgraded shares of Transocean (NYSE: RIG) from Sell to Neutral raised the price target from $38 to $41.Analyst Robin Shoemaker believes “the fall in deepwater rig rates amid a softening of rig demand in 2014 will transition to stability and eventual recovery over the next twelve months.”Shoemaker went on to say, “the current pain in the rig market will be short lived. The trough is likely to be V-shaped...with the bottom reached in the next few months.”The analyst takes a contrarian stance on Transocean's valuation and said “consensus estimates are likely to decline further amid uncertainty as to the length and depth of the rig market downturn.”Shares of Transocean are up 2.45 percent to $40.14. Traders will look to see if the stock can reclaim the $40 figure, which has served as support the past few years.