Simmons Raises Price Target on Transocean (RIG) to $4.65 Following 2Q
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Simmons maintained an Underweight rating on Transocean (NYSE: RIG), and raised the price target to $4.65 (from $2.50), following the company's 2Q earnings report.
Analyst Ian Macpherson commented, "RIG’s outsized Q2 cost beat and corresponding cost guidance reduction made this an impressive result among its peer group and one which should move Street estimates for ’16-’17 materially higher. While visibility for revenue recovery is still lacking, RIG’s ongoing internal cash efficiency improvements (operationally and financially) have been commendable. Our enhanced EBITDA and FCF estimates augment our '18 EV/EBITDA PT estimate from $1.35 to $3.50 and our DCF-derived NAV from $3.65 to $5.80 bringing our PT from $2.50 to $4.65 (7.5x EV/EBITDA multiple unchanged). Notwithstanding the significant positive estimate revisions, we remain cautious on the timing and slope of the earnings recovery, as well as on current valuation levels -- e.g. RIG currently trades at 10.7x our ‘18e EV/EBITDA estimate, without a compelling case yet that ’19 earnings could improve over ’18. That said, it wouldn’t be surprising to see some near term outperformance in RIG given the elevated short interest in the stock (~25%) and magnitude of positive revisions here."
Shares of Transocean closed at $10.83 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Skyworks Solutions (SWKS) PT Raised to $105 at Oppenheimer Following 1Q Report
- BofA/Merrill Lynch Upgrades CF Industries (CF) to Buy, Says "Consensus Estimates Now Beatable"
- PacWest Bancorp (PACW) PT Raised to $60.50 at FIG Partners Following 4Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!