Added to YB: 2026-02-27
Pitch date: 2026-02-25
RIG [neutral]
Transocean Ltd.
+1.43%
current return
Author Info
Company Info
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells in Switzerland and internationally.
Market Cap
$7.2B
Pitch Price
$6.29
Price Target
35.00 (+446%)
Dividend
N/A
EV/EBITDA
9.04
P/E
-2.15
EV/Sales
3.17
Sector
Energy Equipment and Services
Category
special_situation
2025 Q4 Earnings Update Part 2: $RIG
RIG (update): Acquiring Valaris (not Seadrill) in all-stock deal creates market leader w/ mgmt track record of securing better day rates. Claims $200M annual synergies (aggressive but feasible given $150M excess onshore capacity). Deleverages balance sheet, accelerates capital returns by ~2yrs. Replacement cost ~$21/share; target $35 as day rates rise toward replacement cost. Stock at $6.54 still cheap if offshore drilling not obsolete. Market reacted positively (rare for acquirer). Could still acquire Seadrill next. Q4 showed continued steady market improvement.
Read full article (2 min)