- Analysts continue to weigh in on Transocean’s (RIG -0.2%) future course after the company revealed a plan that would make it look more like Seadrill instead of the conservative driller of the past.
- RBC doesn't care for the stock, expecting 2014 will bring continued dayrate pressure for all floaters and downtime between contracts; RIG believes oversupply conditions in the floater market could persist for the next 18-24 months. and the firm sees little upside in the stock until there is more clarity in rig demand.
- Barclays is far more optimistic, believing RIG is undergoing a metamorphosis into a progressive contract driller as the company takes long-needed steps to rectify its cost structure and improve its asset-quality mix; the move to construct up to 10 speculative high-specification jackups and two drillships signals an evolving strategic mindset and should be viewed favorably.