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Morgan Stanley analysts believe that Transocean's (NYSE:RIG) share price will rise in absolute terms over the next 60 days.
Analysts Ole Slorer and Igor Levi said, "We expect a couple of deepwater drilling permits to materialize before the end of the year, which we believe will act as a catalyst for the stock, as this would be constructive for RIG's deepwater floaters operating in the GoM, with further positive implications on worldwide deepwater supply/demand dynamics. Despite recent strength, the stock has underperformed its peers by 2100 bps since Macondo, which represents ~$6 bn in market cap or ~$20/share, while we see risk of only $2-$5/share (adjusting for $1 bn of liability insurance). We estimate that there is about an 80%, or 'highly likely', probability for the scenario."

From here:

Looks like the rally is going to get stronger heading into 1Q2011.

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