5 Best European Growth Stocks to Buy

4. Transocean Ltd. (NYSE:RIG)

On May 7, 2026, Barclays upgraded Transocean Ltd. (NYSE:RIG) to Overweight from Equal Weight and raised the firm’s price target to $8 from $6. The firm also upgraded its broader view on the energy services sector to Positive from Neutral, arguing that the group is facing its strongest setup in roughly two decades. Barclays said that once the current supply shock subsides, oil prices are likely to remain structurally higher, which could drive increased upstream spending activity in 2027 and 2028. The firm added that geopolitical developments in the Middle East could further support a multi-year increase in upstream investment, potentially leading to a new earnings revision cycle and valuation re-rating across energy services names.

On May 4, 2026, Transocean Ltd. (NYSE:RIG) reported Q1 revenue totaled $1.08B, ahead of the consensus estimate of $1.03B. As of May 4, 2026, the company’s total backlog stood at approximately $7.1B. President and CEO Keelan Adamson said the company delivered a strong start to the year, highlighted by new or extended contracts across five rigs during the quarter. Adamson noted that the backlog reflects continued demand for Transocean’s differentiated offshore assets and carries an implied average day rate above $450,000. Management also pointed to better-than-expected quarterly revenue and adjusted EBITDA margin above 40%. The company added that it continued to improve financial flexibility during the quarter through accelerated debt reduction, lower interest expense, and ongoing balance sheet simplification efforts.

For full-year 2026, Transocean expects revenue between $3.8B and $3.9B, compared to the consensus estimate of $3.88B. The company also expects capital expenditures of approximately $150M.

Transocean Ltd. (NYSE:RIG) provides offshore contract drilling services for oil and gas wells globally.