Transocean price target lowered to $3.50 from $4.50 at Citi

Citi analyst Scott Gruber lowered the firm’s price target on Transocean (RIG) to $3.50 from $4.50 and keeps a Neutral rating on the shares. The offshore driller stocks have declined 35%, on average over the past six months given extended whitespace expectations, concerns around day rates slipping lower, and lower crude prices, the analyst tells investors in a research note. The firm says where rates bottom “is the big question.” Citi prefers Noble Corp. (NE) on its near-term buyback potential, and Seadrill (SDRL) on valuation “as those waiting for a deal appear to have exited.”