Forecasts and consensus ratings for Transocean
Now that Transocean (RIG) has released its 4Q15 earnings, approximately 8% of Wall Street analysts tracking the company’s stock have rated it a “buy” or some equivalent. Approximately 36% have rated the company a “hold” or an equivalent, and a whopping 56% of analysts have recommended a “sell.”
By comparison, approximately 46% of analysts tracking Noble Corporation (NE) rate it a “buy” or some equivalent. Approximately 31% have rated NE as “hold,” while the remaining 23% have rated it as “sell.” Transocean makes up about 2.5% of the VanEck Vectors Oil Services ETF (OIH).
Analyst recommendations for Transocean
For individual recommendations, Capital One Securities has given Transocean a target price of $8. Transocean currently trades near $8.6, implying a return of approximately -8% for the next 12 months. By contrast, Scotia Howard Weil, an energy investment research and financial service provider, has given RIG a one-year target price of $16—one of RIG’s highest target prices, implying a ~84% return over the next one year.
Among large investment banks, Morgan Stanley (MS) has given Transocean a one-year target price of $2.7—one of its lowest target prices, implying an approximate return of -69% at its current price over the next 12 months.
Analyst target prices for Transocean
After RIG’s 4Q15 financial results, then, while the highest target price for Transocean is $16, the lowest is $2.7. This puts RIG’s median target price, as surveyed among the sell-side analysts, at ~$9.5. Because Transocean is currently trading at ~$8.7, this median price actually implies a nearly 9% upside.
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