Jefferies Remains Neutral on Transocean Ltd. (RIG)

Jefferies is out with its report today on Transocean Ltd. RIG, maintaining Neutral. In a note to clients, Jefferies writes, "Although we are positive on the recovery in offshore drilling activity in 2011 and 2012, we remain neutral on RIG shares as we believe idle capacity, newbuild supply growth, and lack of EPS upside provide headwinds for the industry. We also believe that Consensus EPS expectations remain too high." Jefferies maintains an $81 PT on RIG. At the time of posting, shares of RIG were trading at $82.26, up 0.28% from Wednesday's close.