Skip to main content

Market Overview

Credit Suisse Just Downgraded Transocean, And Shares Are Falling

Credit Suisse Just Downgraded Transocean, And Shares Are Falling

In a report published Tuesday, Credit Suisse analyst Gregory Lewis downgraded his rating on Transocean LTD (NYSE: RIG) from Neutral to Underperform, but reiterated a $12.00 price target.

In the report, Credit Suisse noted it is "downgrading to Underperform (from Neutral) and maintaining [a] $12 TP.

"Our $12 TP is 6x our 2016 EBITDA estimate," they add. "The down-cycle should be more painful for RIG than most owing to its mix of some new and a lot of old rigs. RIG has ten idle floaters (3 in GoM, 2 in WAFA, 3 in SE Asia, 1 in NSea, 1 in transit) – accounting for 15% of RIG's 2014 revenue."

Related Link: Which Oil Majors Have The Closest Correlation To Oil?

The firm estimates 54 percent of its 2014 revenue is "at risk" over the next two years, "mainly due to floater contract roll-offs." Credit Suisse expects Transocean to stockpile rigs through 2016.

"Tough times ahead," the analyst concludes.

Transocean closed on Monday at $20.44, up 10 percent. Shares are down more than 3 percent in Tuesday's pre-market trading.

Image credit: Public Domain

Latest Ratings for RIG

May 2021SusquehannaMaintainsNeutral
Apr 2021Morgan StanleyMaintainsEqual-Weight
Mar 2021BarclaysDowngradesEqual-WeightUnderweight

View More Analyst Ratings for RIG
View the Latest Analyst Ratings


Related Articles (RIG)

View Comments and Join the Discussion!

Posted-In: Credit Suisse Gregory LewisAnalyst Color Downgrades Previews Top Stories Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at