UPDATE: Jefferies Lowers PT on Transocean on Near-Term Uncertainties

In a report published Friday, Jefferies analyst Brad Handler reiterated a Hold rating on Transocean (NYSE: RIG), but lowered the price target from $59.00 to $55.00.

In the report, Jefferies noted, “RIG's floater choppiness expectation through year-end is as we expected, but makes for some uncertainty. Further, the narrowing of the opex guide to the high end of the prior range negatively surprised and could imply pressure to '14E. We lower '13E EPS and, more modestly, '14E, and we lower our PT to $55 and maintain our Hold. However, given share weakness, contracting progress and coming operations cost savings guidance intrigue us for later this year.”

Transocean closed on Thursday at $48.48.