UPDATE: Deutsche Bank Upgrades Transocean

In a report published Friday, Deutsche Bank Markets Research analyst Mike Urban upgraded shares of Transocean Ltd. (NYSE: RIG) from Sell to Hold due to near-term catalysts and the company's strong backlog.

Urban noted that shares of Transocean feel “over-sold.” The analyst added that there is “some potential near-term catalysts with self-help initiatives and improved return to shareholders/ progress on an MLP. That said, the backdrop remains challenging and we still expect newbuild rates and the jackup market to roll lower later this year which is likely to temper any enthusiasm.”

Deutsche Bank adjusted estimates following management's reflected numbers. The analyst lowered 2014 and 2015 estimates from $5.42 to $4.23 and from $5.65 to $4.40, respectively.

Shares of Transocean closed at $39.45 on Friday and are currently up 2.05 percent at $40.26.