Transocean price target lowered to $4 from $5 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Transocean (RIG) to $4 from $5 and keeps an Equal Weight rating on the shares. While the firm agrees that upstream activity risks have increased year-to-date, there are some offsetting factors to consider, as the market is overly pushing what it views as oilfield science and energy stocks but not fully appreciating more diversified energy S&E stocks. The firm reiterated its preference for exposure to portfolios that have relatively outsized duration and defensive/diverse characteristics offering idiosyncratic growth opportunities.