Should You Buy Transocean Ltd (RIG) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
4.870
1 Day change
-1.81%
52 Week Range
5.100
Analysis Updated At
2026/01/26
Transocean Ltd. (RIG) is not a strong buy at this moment for a beginner investor with a long-term strategy. While there are some positive indicators, such as bullish technicals and improving financials, the lack of strong proprietary trading signals, mixed analyst ratings, and overbought RSI suggest waiting for a better entry point.
Technical Analysis
The stock shows bullish momentum with MACD positively expanding and moving averages in a bullish alignment (SMA_5 > SMA_20 > SMA_200). However, the RSI of 84.871 indicates the stock is overbought, suggesting a potential pullback. Key resistance levels are at R1: 4.834 and R2: 5.03, with support at S1: 4.2 and S2: 4.004.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Technical Summary
Sell
4
Buy
9
Positive Catalysts
Bullish technical indicators.
Revenue growth of 8.44% YoY in Q3
Gross margin improvement by 33.84% YoY.
Analyst price targets have been raised by multiple firms in recent months.
Neutral/Negative Catalysts
RSI indicates overbought conditions, suggesting a potential pullback.
Mixed analyst ratings, with some firms maintaining Neutral or Underweight stances.
No significant hedge fund or insider trading trends.
Stock trend analysis suggests a short-term decline (-1.06% in the next day, -0.98% in the next week).
Financial Performance
In Q3 2025, revenue increased by 8.44% YoY to $1.028 billion. Net income improved significantly by 289.27% YoY but remains negative at -$1.923 billion. EPS increased by 257.14% YoY to -2. Gross margin improved by 33.84% YoY to 27.53%.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analyst ratings are mixed. Positive ratings include Susquehanna raising the price target to $5 and Barclays maintaining an Overweight rating with a $4.50 target. However, JPMorgan downgraded the stock to Underweight, citing upstream spending headwinds. Morgan Stanley and Citi maintain Neutral ratings, reflecting cautious sentiment in the sector.
Wall Street analysts forecast RIG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIG is 4.25 USD with a low forecast of 3 USD and a high forecast of 5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
Wall Street analysts forecast RIG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIG is 4.25 USD with a low forecast of 3 USD and a high forecast of 5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
3 Hold
2 Sell
Hold
Current: 4.960
Low
3
Averages
4.25
High
5
Current: 4.960
Low
3
Averages
4.25
High
5
Susquehanna
Charles Minervino
Positive
maintain
$5
AI Analysis
2026-01-07
Reason
Susquehanna
Charles Minervino
Price Target
$5
AI Analysis
2026-01-07
maintain
Positive
Reason
Susquehanna analyst Charles Minervino raised the firm's price target on Transocean to $5 from $4.50 and keeps a Positive rating on the shares. With U.S. rig and frac spread count flattish from Q3 levels heading into Q4 earnings season for the oilfield services sector, U.S. drilling and completions activity "appears to have held in better than most were expecting," the analyst tells investors in a group preview.
Piper Sandler
Neutral -> Overweight
upgrade
$15 -> $17
2025-12-18
Reason
Piper Sandler
Price Target
$15 -> $17
2025-12-18
upgrade
Neutral -> Overweight
Reason
As previously reported, Piper Sandler upgraded Ranger Energy to Overweight from Neutral with a price target of $17, up from $15. The firm cites its favorable growth outlook, including its recent acquisition of American Well Services, which further consolidates the U.S. well service rig market and the buildout of its hybrid electric Echo rig. Further, Piper sees an improving rate-of-change driven by its recent American Well Services acquisition and Echo rig buildout with continued free cash flow generation.
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