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Goldman's Sellside Team Does A Bang Up Job Again, Offshore Drilling Edition
Goldman's Daniel Boyd CFA, the firm's rig analyst, has once again confirmed that Goldman really places its clients above all else. After issuing a report on Transocean, two short weeks ago on May 24 with a Buy rating and a $87 price target, today, the same analyst has decided to downgrade it to Neutral and a $54 PT. And here we were thinking that with the worst of the oil spill had already taken place in mid May and the bulk of the bad news for the drillers was already priced in. We wonder how much of Goldman's 560,527 RIG shares the company was selling during the past two weeks?
Below is a chart of RIG's price and Goldman's recommendations on it:
Here is a full history of Boyd CFA's recent actions on the name:
And here is the summary from his downgrade today:
Transocean (Neutral): We are removing Transocean from the America’s Buy List and are lowering our six-month, EV/EBITDA-based price target to $54 from $87, implying 10% upside. Our downgrade is driven primarily by our decision to avoid pure play deepwater exposure (hence also downgrading ATW, DO, NE) given what we view as more positive risk/reward in jackup-leveraged Ensco. We also expect investors to remain on the sidelines given the uncertainty surrounding the incident on the Deepwater Horizon, especially given that there are many other energy stocks that are currently trading at attractive valuations and do not have much headline risk. Since adding to the Americas Buy List on June 25, 2009, Transocean shares are –34% vs. +16% for SPX and +2% for OSX. Over the past 12-months, Transocean shares are -39% vs. +13% for SPX and -9% for OSX.
Another Goldman sellside job well done.
h/t Joe Hayek
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My bet is 2-3 times the 560,527 for a massive net short position.
So, with all the "blown" calls by GS, how is it that they can post 100% positive records over a quarter?
What they recomend and what they do, are two different things.
Yup.
Come back Spitzer!!!!!
because the sell side analyst recommendations have nothing to do with the flow trading business
It was a rhetorical question...
:-)
If you choose to do biz with GS then you deserve what you get.
Whoa goldman is matching cramer call by call
Wall Street Analyst = Gypsy
Who downgraded the CAPTCHA questions?
Talk about Captcha questions here try this one off my son's 7th grade math homework today.
4t+14=1.2t+7
Answer just in case you tried: t=1.346
Goldman Sachs Analysis
02/08/2010
Confidential
We are revising our IND +2 forecast due to events we did not anticipate. Therefore, we are this morning lowering our forecast to IND -14 to better correlate with real-world but unforeseen
occurrences of yesterday. Our original forecast should have read IND +2 ex-40+ YD FGS, ex-INT return for TD, ex-onside kick recovery.
TD!
Look at DO. The chart is even more impressive... on the way down buy, buy, buy,... on the way up... sell, sell, sell.. now he threw in the towel.
The Vampire Squid is hard at work, maintaining its reputation.
Some things never change, eh?