It could be for Transocean, Citigroup’s Robin Shoemaker, who upgraded the offshore driller’s shares today. They explain why:
We have upgraded [Transocean] from Sell to Neutral on our view that the fall in deepwater rig rates amid a softening of rig demand in 2014 will transition to stability and eventual recovery over the next twelve months. Against a backdrop of strong oil prices and improving economic conditions, along with the large inventory of deepwater oil discoveries awaiting development, we believe that the current pain in the rig market will be short lived. The trough is likely to be V-shaped, in our view, with the bottom reached in the next few months.