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Analysts’ Revisions for Transocean and Rowan Companies

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Analysts’ revisions

In the previous parts of this series, we discussed various indicators—the rig count, oil price, and drilling permits in October to gauge the offshore drilling industry’s status. In this part, we’ll see how analysts revised their ratings and recommendations for offshore drilling (OIH) companies in October.

Transocean

On October 19, 2017, Transocean’s (RIG) target price was reduced by JPMorgan Chase to $8 from $10. On the same day, HSBC initiated coverage on Transocean with a “hold” rating and a target price of $11.5. On October 17, 2017, Evercore reduced the target price to $20 from $21. On October 12, Citigroup upgraded Transocean to “buy” from “neutral” and raised the target price to $14 from $8.8. Deutsche Bank initiated coverage on Transocean with a “buy” rating and a target price of $13 on October 12, 2017.

On October 30, 2017, 35 analysts gave recommendations on Transocean. Of the 35 analysts, one analyst gave Transocean a “strong buy,” 11 analysts gave a “buy” recommendation, and 15 analysts gave a “hold” recommendation. Seven analysts gave the stock a “sell” recommendation, while only one analyst recommended a “strong sell.”

Rowan Companies

On October 19, 2017, Rowan Companies’ (RDC) target price was raised to $17 from $16 by JPMorgan Chase. On the same day, HSBC initiated coverage on Rowan Companies with a “buy” rating and a target price of $16.8. On October 12, Citigroup raised the target price to $14 from $10.9. On October 10, Deutsche Bank initiated coverage with a “hold” rating and a target price of $15.

Of the 33 analysts covering Rowan Companies, 12 are bullish on the stock, two recommend a “strong buy,” ten recommended a “buy,” and 20 recommended a “hold.” Only one analyst recommended a “sell,” while none recommended a “strong sell.”

In the next part, we’ll discuss analysts’ revisions and consensus recommendations for Diamond Offshore (DO), Noble (NE), and Ensco (ESV).

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