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Wells Fargo Initiated Coverage on Transocean (RIG) with an Outperform'; Down But Not Out

September 8, 2010 7:27 AM EDT
RIG Hot Sheet
Rating Summary:
    17 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Last night, Wells Fargo initiated coverage on Transocean (NYSE: RIG) with an Outperform rating. Valuation range $70-72.

Wells analyst said, "We believe RIG has been oversold as a result of the uncertainty of direct and indirect liabilities stemming from the Macondo oil spill, estimating the current price incorporates over $5B in liabilities; we think it will be less than $1B. RIG is trading at a 20% discount to our NAV estimate including a $1B spill liability."

To see all the upgrades/downgrades on shares of RIG, visit our Analyst Ratings page.

Shares fell $1.60 yesterday to close at $53.05.  The 52-wk trading range is $41.88 - 94.88.


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