Susquehanna lifts Transocean target to $7.50 as Q4 cash flow hits $321M
Susquehanna raised Transocean’s price target from $6.50 to $7.50 after Q4 2025 free cash flow reached $321 million, its highest in nearly ten years. Barclays cut its rating to Equalweight, upped its target from $4.50 to $6 and boosted 2026 EBITDA to $1.391 billion, citing new three-well BP and six-well Australia contracts.
1. Price Target Changes
Susquehanna increased its Transocean price target from $6.50 to $7.50 and maintained a Positive rating, reflecting confidence in the company’s cash flow outlook. Barclays downgraded its rating to Equalweight but raised its price target from $4.50 to $6, based on a rig-by-rig discounted cash flow model with a 10.5% discount rate.
2. Q4 Financial Results
Transocean generated $321 million in free cash flow during Q4 2025, its highest quarterly total in nearly ten years, and $626 million for the full year. These robust cash generation figures led Barclays to increase its 2026 EBITDA estimate to $1.391 billion and its 2027 forecast to $1.47 billion.
3. Major Contract Awards
The company secured a three-well contract with BP in Brazil for the Deepwater Mykonos rig and a six-well program for the Deepwater Skyros in Australia, underlining Transocean’s strength in ultra-deepwater and harsh environment drilling services.