Analyst Downgrades: Transocean, Seadrill, Suncor Energy

Analysts downwardly revised their ratings on RIG, SDRL, and SU

Dec 1, 2014 at 9:26 AM
facebook X logo linkedin

Analysts are weighing in today on energy names Transocean LTD (NYSE:RIG), Seadrill Ltd (NYSE:SDRL), and Suncor Energy Inc. (USA) (NYSE:SU). Here's a quick roundup of today's bearish brokerage notes on RIG, SDRL, and SU.

  • RIG saw its price target slashed to $18 from $25 at Susquehanna -- to go along with an underscored "neutral" opinion -- and its rating reduced to "neutral" from "buy" at Guggenheim. This negativity follows a woeful performance by the shares, which are down 57.5% year-to-date to rest at $21.01, and hit another fresh 10-year low of $20.88 on Friday . In fact, all 16 analysts covering Transocean LTD have given it a "hold" or "strong sell" recommendation. Plus, more than one-quarter of the equity's float is sold short, representing 6.5 days' worth of pent-up buying demand, at RIG's average daily volume.

  • Sector peer SDRL, meanwhile, received a trio of brokerage notes. On the one hand, Canaccord Genuity reduced its price target on the stock to NOK 90 from NOK 125 (and reiterated its "sell" recommendation), while Guggenheim cut its rating to "neutral" from "buy." On the other, Wells Fargo lifted its opinion on Seadrill Ltd to "market perform." Technically speaking, the security has struggled, tumbling 64.3% in 2014 to trade at $14.66, and underperforming the broader S&P 500 Index (SPX) by 59 percentage points during the last three months. Also, the stock bottomed at a five-year low of $14.26 on Friday. On the sentiment front, short interest spiked 16.4% during the latest reporting period, and now makes up 8.4% of SDRL's total float.

  • Finally, National Bank Financial weighed in on a number of energy firms, including SU, where the brokerage firm trimmed its price target to C$45 from C$46, but maintained an "outperform" rating. On the charts, the security is down nearly 10% year-to-date, after gapping 10% lower on Friday to close at $31.31 amid plunging oil prices. If this downward trajectory continues, Suncor Energy Inc. could face additional bearish brokerage notes. At present, nine out of 11 covering analysts give the stock a "buy" or better recommendation, compared to two "holds" and not a single "sell." Plus, SU's consensus 12-month price target of $48 stands at a more than 53% premium to current trading levels.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI