Transocean LTD (NYSE:RIG) is all set to cut to sell from neutral with a price target of $50 to a down price of $53 at Goldman Sachs. This is being done as the analysts of Goldman Sachs believe that the fundamentals will take over at the end of the technical buying which prompted the news of Transocean LTD upcoming with an addition of S & P 500 index.
Some of the other reasons behind the down grade of the company are that Transocean has faced a significant contract for the renewal risk. This is affecting the company as several of the deep water rigs are ending their contracts in the next six months. The key catalyst for the off shore drillers is increasing in day rates but the rates has also flattened for the UDW rigs.
Meanwhile, Goldman Sachs is upgrading Patterson UTI from a sell rating to a Neutral rating. This decision is being taken by the analysts of Goldsman Sachs after the release of the quarter three report of Patterson UTI. In the third quarter report of Patterson UTI, it is mentioned that the company has managed to get a better E & P point which has proved to be beneficial for them.
Talking about the recent trading session of Transocean LTD, a negative decrease has been experienced by the company. Around 5.72 million shares were traded and an average trading volume of 4.18 million shares was expected. The value of the company is now valued at $17.60 billion.
Transocean LTD is an international provider of offshore contract drilling services engaged in providing gas and oil wells. Transocean LTD is divided into two segments namely drilling management services and contract drilling services. The contract drilling services department is engaged in providing contracts to other companies.
