UPDATE: Credit Suisse Upgrades Transocean Ltd. to Outperform, Reiterates $60 PT on Positive Outlook

In a report published Thursday, Credit Suisse analyst Gregory Lewis upgraded the rating on

from Neutral to Outperform, and reiterated the $60.00 price target. In the report, Credit Suisse noted, “We are upgrading RIG to Outperform from Neutral. Our $60 target price points to ~30% upside. We believe RIG is washed out at current levels and the bifurcation of 4/5th gen rigs is finally baked into forward earnings. We expect management's cost cutting initiative to push margins higher (currently industry low). RIG also has a 5% dividend yield (3rd highest among the drillers) and we believe it is sustainable.” Transocean Ltd. closed on Wednesday at $45.39.