UPDATE: RBC Capital Upgrades Transocean (RIG) to Sector Perform

(updated to add analyst comment)

RBC Capital upgraded Transocean (NYSE: RIG) from Underperform to Sector Perform with a price target of $11.00.

Analyst Kurt Hallead likes the improvement in the deep water outlook and management commentary regarding more contracts at positive margins. The analyst believes that customer willingness to contract rigs for longer periods signals greater confidence in the company ability to extract subsea crude economically for a sustained period.

FY 2017 EPS estimate falls from $0.02 to ($0.01), FY 2018 EPS estimate rises from ($1.05) to ($0.43) and FY 2019 EPS estimate rises from ($0.90) to ($0.12).

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 $7.70 yesterday.

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