Canaccord Genuity analyst Alex Brooks came out with a bearish stance on shares of Transocean LTD (NYSE:RIG), reiterating a Sell rating on the stock and keeping the price target at $10 per share, which reflects a potential downside of 59% from last closing price.

Brooks’ report comes after the company released its first-quarter financial results and provided a corporate update. The analyst does not deny that the results were strong, but he still struggles to see the stock outperforming with ongoing poor end markets and in his view a very high risk of an equity issue.

Brooks noted, “With the new guidance presented with the 1Q results, Transocean is back to its traditional (pre-2010) focus on reducing costs. This is welcome and overdue: it is not long ago that the working assumption for costs for a deepwater rig was $100-120k/day, not the $160-$200k that has now become common in the industry. Although some of this cost is changes to operating practice, not all of it is: and we hear many concerning stories of costs and delays incurred for no identifiable benefit that we can see.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alex Brooks has a total average return of -23.5% and a 20.0% success rate. Brooks has a -48.4% average return when recommending RIG, and is ranked #3439 out of 3602 analysts.