Goldman Sachs Upgrades Transocean (RIG) to Neutral, Expectations Too Low

September 26, 2012 7:17 AM EDT
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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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Goldman Sachs upgraded Transocean (NYSE: RIG) from Sell to Neutral with a price target of $54.00 (from $52.00), following "noteworthy underperformance" among its offshore drilling peers and the broader oilfield services sector.

"We still acknowledge that RIG operates one of the oldest fleets in the industry and will likely continue to face downtime and cost issues, but think that risk-reward has recently come more into balance for the stock, especially as we expect the company to beat consensus estimates in 3Q12E."

Goldman is no 14% above consensus in our 3Q12E EPS estimates. "We believe that the consensus estimates for the quarter may be too low and, therefore, we raise the stock to Neutral from Sell."

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 $46.87 yesterday.

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