Canaccord Slashes Price Target For Transocean LTD Following 4Q Results

In a research report released Monday, Canaccord Genuity analyst Alex Brooks reiterated a Sell rating on Transocean LTD (NYSE:RIG) and reduced the price target to CHF12.00 (from CHF14.30), following recent fourth-quarter results.

Brooks stated, “Despite a working capital outflow, and another $0.75/sh dividend payment, Transocean managed to hold debt steady in 4Q, with free cash flow of $248m. Availability of rigs was good, and compared with our forecasts adjusted EPS of $1.16 was very strong (CGe $0.64), thanks to both better revenue efficiency and higher day-rates than we had expected. In addition, cost control was good, with average costs held steady across the fleet at $141k/day, steady on 3Q and down 4% y/y.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alex Brooks has a total average return of 34.9% and a 100.0% success rate. Brooks has a average return when recommending RIG, and is ranked #1667 out of 3516 analysts.


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