Transocean (Sell, TP: USD1.00) - Still striving to maximise equity value
Having executed well on liability management and taken a leadership role in pushing UDW dayrates higher, Transocean continues to strive to maximise the equity value. Nevertheless, we still see a sustainability risk to the capital structure, even at UDW dayrates in the high-USD200k/low-USD300k range. Hence, we believe that ultimately some form of financial restructuring might be needed, which could hurt the valuation. We reiterate our SELL, but have raised our target price to USD1.00 (0.50). Our NAV remains negative, and leverage is high. From a relative valuation perspective, Transocean is trading at a c240% premium to peers on asset values.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.