Added to YB: 2026-04-20
Pitch date: 2026-02-14
RIG [bullish]
Transocean Ltd.
-7.91%
current return
Author Info
No bio for this author
Company Info
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells in Switzerland and internationally.
Market Cap
$6.8B
Pitch Price
$6.45
Price Target
20.00 (+215%)
Dividend
N/A
EV/EBITDA
8.75
P/E
-2.02
EV/Sales
3.07
Sector
Energy Equipment and Services
Category
special_situation
Transocean Ltd. - $RIG
RIG: Acquiring Valaris in all-stock deal, creating ~$20B EV entity with 28% global drillship market share. 26 tier 1 drillships (40% of industry's ~60 total). Expect $0.75-$1.00 2028 FCF/share at $600K avg dayrate (vs ~$450K current). Stock trades ~40% of replacement cost. Tier 1 utilization approaching 100% by 2027, zero order book vs 30-40% at prior peaks. $20+ PT as dayrates move higher into multi-year offshore upcycle driven by slowing non-OPEC supply growth post-2H26.
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