Citi Maintains a Hold on Transocean Ltd. (RIG)

Transocean Ltd. (NYSE:RIG) is one of the best penny stocks to buy according to hedge funds. In a report released on October 6, Citi maintained a Hold on Transocean Ltd. (NYSE:RIG) and assigned a price target of $3.50.

Transocean Ltd. (RIG) Up 9.5% Ahead of Q2 Earnings

Transocean Ltd. (NYSE:RIG) reported in its fiscal Q2 2025 results net unfavorable items of $957 million. The adjusted net income for the quarter came up to $19 million after consideration of these net unfavorable items.

Management also reported that contract drilling revenues for the three months ended June 30 rose sequentially by $82 million to $988 million, attributing the increase to improved revenue efficiency, improved rig utilization, an additional day in the quarter, and higher reimbursement revenues.

Transocean Ltd. (NYSE:RIG) provides offshore contract drilling services for oil and gas wells. The company also owns and operates offshore drilling fleets such as ultra-deepwater, deepwater, harsh environment, and midwater rigs.

While we acknowledge the potential of RIG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.