Transocean Ltd. (NYSE:RIG) ranks among the best oil and gas drilling stocks to buy now. Following recent contract renewals with Petrobras, Barclays reaffirmed its Equalweight rating and $6 price target for Transocean Ltd. (NYSE:RIG). The company has six rigs contracted with Petrobras, four of which are blend/extend prospects.
According to Barclays, the extensions suggest a need for deepwater rigs, despite Petrobras’ intention to reduce costs in the short term via blend/extend agreements.
Similarly, on May 19, BofA increased its price target for Transocean Ltd. to $4 from $3.50 while maintaining an Underperform rating on the stock. The firm, having upgraded its oilfield services models for Q1 results and 10-Q reports, noted that its average predictions for 2027 and 2028 EBITDA are 10% and 16% higher than the average, respectively.
In Q1, the company achieved contract drilling revenue of $1.08 billion, aided by a solid revenue efficiency of 97.3%. During the quarter, the company built up $1.6 billion in contract backlog. Transocean Ltd. also said that it signed new or extended contracts for five rigs during the quarter, bringing its total backlog to $7.1 billion.
Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a strong focus on ultra-deepwater and harsh environment drilling services.
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