Tuesday, June 8, 2010

Transocean (NYSE:RIG) Downgraded by Goldman Sachs (NYSE:GS)

Goldman Sachs (NYSE:GS) was bearish on a number of oil stocks today, including Transocean (NYSE:RIG), which they downgraded from "Buy" to "Neutral."

Much of this related to the fallout related to the oil leak in the Gulf of Mexico and the effects it'll have on the company.

"We believe that the Macondo oil spill is likely to have a long lasting impact on the industry and most negatively impact the deep water drillers," Goldman Sachs said in a note to clients. "We think that the current six month moratorium on deep water drilling in the U.S. could be extended and now assume that it lasts 12 months with limited activity until 2012; deep water dayrates are likely to face pressure."

Shares as of 11:52 AM EDT were down to $45.03, a $4.14 fall, or 8.42 percent

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