Barclays reaffirmed its Equalweight rating and $6 price target for Transocean, while BofA raised its target to $4 from $3.50 but kept an Underperform rating, after the offshore driller secured contract extensions with Petrobras and grew its backlog. Transocean has six rigs contracted with Petrobras, four of which are blend/extend prospects, and Barclays said the extensions signal ongoing deepwater rig demand even as Petrobras seeks near-term cost reductions. BofA noted its average EBITDA estimates for 2027 and 2028 are 10% and 16% above consensus, respectively. In the first quarter, Transocean posted contract drilling revenue of $1.08 billion with 97.3% revenue efficiency, added $1.6 billion in contract backlog, and signed new or extended contracts for five rigs, bringing its total backlog to $7.1 billion.
Transocean LtdTransocean secured contract extensions with Petrobras and grew backlog, signaling ongoing deepwater rig demand.
Petroleo Brasileiro Petrobras SA ADRPetrobras extended contracts with Transocean, but the article focuses on Transocean's perspective, not Petrobras's.
Bank of America Corp
Barclays PLC