Citi Reiterates Buy on Transocean

Citi is out with its report on Transocean RIG, reiterating Buy. In a note to clients, Citi writes, "The substantial downtime increases could pose a near-term risk to earnings this quarter. We may see a repeat of the 1Q11 earnings report in which analyst estimates failed to incorporate a sufficient level of out-of-service time and its associated costs. However, the near-term earnings implications do not alter our long-term positive view of the stock. The company had also previously indicated that out-of-service time would decline in the second-half of 2011. We reiterate our Buy (1H) rating and $90 price target on RIG." At the time of posting, shares of RIG were trading pre-market at $62.31, up 0.91% from Thursday's close.