Stock Update (NYSE:RIG): Transocean LTD Announces Ultra-Deepwater Drillship Delivery Delays For Deepwater Pontus, Deepwater Poseidon
Transocean LTD (NYSE:RIG) announced a mutual agreement with its customer, Shell EP Wells Equipment Wells Services B.V. (Shell), and the shipyard, Daewoo Shipbuilding & Marine Engineering Co. (DSME), to delay the operating and delivery contracts of two newbuild ultra-deepwater drillships – the Deepwater Pontus and the Deepwater Poseidon – by 12 months each. The delay has no impact on the duration or dayrate of the original 10-year operating contracts for each of the two newbuild ultra-deepwater drillships. Parties will be compensated for the postponement. The specific terms are not disclosed. The delivery and operating agreements fo… (Original Source)
Shares of Transocean LTD closed last Friday at $15.75. RIG has a 1-year high of $30.98 and a 1-year low of $11.26. The stock’s 50-day moving average is $14.78 and its 200-day moving average is $15.73.
On the ratings front, Transocean has been the subject of a number of recent research reports. In a report issued on October 14, Global Hunter analyst Mark Brown downgraded RIG to Sell, with a price target of $12, which represents a potential downside of 23.8% from where the stock is currently trading. Separately, on October 8, KeyBanc’s Robin Shoemaker initiated coverage with a Hold rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mark Brown and Robin Shoemaker have a total average return of -6.7% and -19.1% respectively. Brown has a success rate of 48.3% and is ranked #3372 out of 3801 analysts, while Shoemaker has a success rate of 44.4% and is ranked #3701.
Overall, 4 research analysts have rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and . When considering if perhaps the stock is under or overvalued, the average price target is $9.00 which is -42.9% under where the stock closed last Friday.
Transocean Ltd is an international provider of offshore contract drilling services for oil and gas wells. The Company has two operating segments; contract drilling services and drilling management services.