Transocean Outlook Stays Bullish

Houston, Texas-based Transocean, Inc., having the very appropriate NYSE ticker of RIG - Snapshot Report, is the world's largest offshore drilling contractor. The company owned, had partial ownership interests in, or operated 137 mobile offshore drilling rigs.

We are maintaining our Buy recommendation on Transocean shares following the company's solid operational results in the recent quarter. The company reported strong revenue and earnings growth, driven by the acquisition of GlobalSantaFe and higher average dayrates. Revenue more than doubled, soaring to $3.2 billion, while net income topped $1.1 billion.

With a backlog of nearly $41 billion, the new Transocean offers an unparalleled level of earnings and cash flow visibility. We expect the positive momentum to continue due to the favorable deepwater drilling outlook that should support demand for the company's products.

Read the full analyst report on RIG.