RIG currently trades for less than 40% of book value, has nearly $3 Billion in cash and has a current ratio of nearly 2. It's cash flow is negative $250 million, or less than 10% of cash. If half the company's value were written off tomorrow, they would still be selling below book. (The reason they just beat on earnings is because they were doing more work at higher prices than analysts realized.) They also have a multi-billion-dollar order backlog that would provide years of work even if half of it were cancelled. I fail to see how Deutsche Bank arrives at their conclusions, though based on some of their other ratings that I've seen recently, Deutsche ratings may have become a contrarian indicator. This reminds me very much of the"analysis" being issued on RRD two years ago, just before I doubled my money on them while they paid me a 10% dividend as I waited for that to happen. (I bet with Icahn--long RIG.)
After studying today's fiscal numbers for 2104 and projections for 2015 I am betting they will survive and come out of it meaner and leaner than before.