Deutsche Bank Downgrades Transocean (RIG) to Sell; Catalysts Realized

February 15, 2013 6:46 AM EST
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Price: $15.31 +1.46%

Rating Summary:
    12 Buy, 24 Hold, 11 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Deutsche Bank downgraded Transocean (NYSE: RIG) from Hold to Sell with a price target of $49.00.

The firm comments, "We are lowering our rating from HOLD to SELL. While RIG has made significant progress in addressing its myriad issues, the market and its fleet may increasingly be working against it. Despite a recent update on downtime, yesterday's fleet status report showed a 7% increase in '13 downtime and the first estimate of 2014 downtime is up an additional 5% vs. 2013 (despite a shipyard stay being pulled into '13 and ongoing efforts to improve revenue efficiency). Meanwhile, costs are rising even as rates are flattening. With greater visibility on its Macondo liability and greater clarity on the demands of activist Carl Icahn, most catalysts have been realized as well."

The firm is maintaining Q4 and 2012 estimates of $0.76 and $3.60, respectively. 2013 and 2014 estimates go to $4.59 and $5.70 from $4.69 and $5.95, respectively.

For an analyst ratings summary and ratings history on Transocean click here. For more ratings news on Transocean click here.

Shares of Transocean closed at $59.30 yesterday.

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