Transocean Cut To Underweight At J.P. Morgan (RIG)

J.P.Morgan Chase & Co is cutting its rating on shares of Transocean (NYSE: RIG) to Underweight from Neutral, after the rig operator's stock rallied sharply on the release of its contract with BP (NYSE: BP). J.P. Morgan has a price target of $55 on Transocean.

In the report J.P. Morgan said, "While we aren't predicting the outcome, the liability risk is not zero, and we believe investors should be compensated with a discount valuation before investing in this stock."

Shares of Transocean are down 91 cents to $57.02 in early pre-market trading.