Analyst Downgrades: Manitowoc Company Inc, Transocean LTD, and Diamond Offshore Drilling Inc

Analysts downwardly revised their ratings and price targets on Manitowoc Company Inc (NYSE:MTW), Transocean LTD (NYSE:RIG), and Diamond Offshore Drilling Inc (NYSE:DO)

Josh Selway

Aug 12, 2016 at 10:18 AM

Analysts are weighing in on heavy machinery maker Manitowoc Company Inc (NYSE:MTW), as well as drilling stocks Transocean LTD (NYSE:RIG) and Diamond Offshore Drilling Inc (NYSE:DO). Here's a quick roundup of today's bearish brokerage notes on MTW, RIG, and DO.

MTW is mostly flat this morning at $4.75, following a price-target cut to $4.50 from $6 at UBS. Despite a recent bear gap, the shares are almost 47% higher in 2016, but short interest remains elevated. Specifically, 11.4% of Manitowoc Company Inc's total float is sold short, and, at the stock's average trading volumes, it would take these bears a full week to cover their positions.

RBC lowered its price target on RIG to $11 from $14, and the stock has since dropped 1.4% to trade at $10.23. Longer term, Transocean LTD has been shaky at best, losing more than 17% year-to-date. As such, options traders have taken a bearish approach at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The stock's 10-day put/call volume ratio across these exchanges comes in at 1.41, meaning put buying has had a clear advantage to call buying.

DO has slipped 1.3% at $20.48, following a price-target cut to $23 from $29 at RBC. The stock is currently hovering just 3% below its year-to-date breakeven level, and analysts certainly aren't expecting much from the shares. By the numbers, 14 of 16 covering brokerage firms rate Diamond Offshore Drilling Inc a "hold" or worse, and the stock's average 12-month price targets sits right overhead at $21.10.

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