FILE - In this April 21, 2010 file aerial photo, the Deepwater Horizon oil rig burns in the Gulf of Mexico. The Justice Department has reached a $1.4 billion settlement with Transocean Ltd., the owner of the drilling rig that sank after an explosion killed 11 workers and spawned the massive 2010 oil spill in the gulf. On Thursday, Jan. 3, 2013, two people with knowledge of the negotiations say Switzerland-based Transocean would pay the money to resolve the department's civil and criminal probe of the company's role in the Deepwater Horizon disaster. (AP Photo/Gerald Herbert, File)
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FILE - In this April 21, 2010 file aerial photo, the Deepwater Horizon oil rig burns in the Gulf of Mexico. The Justice Department has reached a $1.4 billion settlement with Transocean Ltd., the owner of the drilling rig that sank after an explosion killed 11 workers and spawned the massive 2010 oil spill in the gulf. On Thursday, Jan. 3, 2013, two people with knowledge of the negotiations say Switzerland-based Transocean would pay the money to resolve the department's civil and criminal probe of the company's role in the Deepwater Horizon disaster. (AP Photo/Gerald Herbert, File)
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President Barack Obama, with current White House Chief of Staff Jack Lew, right, announces that he will name current Deputy National Security Adviser Denis McDonough,left, as his next chief of staff, Friday, Jan. 25, 2013, in the East Room of the White House in Washington. (AP Photo/Carolyn Kaster)
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FILE - In this March 6, 2011 file photo, Deputy National Security Adviser Denis McDonough speaks in Sterling, Va. The White House says President Barack Obama has picked McDonough as his next chief of staff. (AP Photo/Cliff Owen, File)
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This photo provided by the New Jersey Institute of Technology shows a 9-mm semi-automatic handgun configured with transducers to its handle that can detect the grasp of an authorized user. To gun rights groups, the idea of using technology to control who can fire a gun smacks of a limitation on personal rights, particularly if it might be mandated by government. At the same time, some gun control advocates worry that such technology, by making guns appear falsely safe, would encourage Americans to stock up on even more weapons then they already have in their homes. (AP Photo/NJIT)
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FILE - In this Tuesday, Jan. 6, 2004 file photo, New Jersey Gov. James E. McGreevey, right, points to the handle of a "smart gun" with grip recognition technology, held by the gun's inventor Michael Recce, associate professor of information systems at New Jersey Institute of Technology in Newark, N.J. When the White House recently called for pushing ahead with such new technology as part of President Obama’s plan to cut gun violence, the administration did not mention the concept’s embattled past. As with so much else in the nation's long-running divisions over gun rights and regulation, what sounds like a futuristic vision is, in fact, an idea that has been kicked around for years, sidelined by intense suspicion, doubts about feasibility and pressure tactics. (AP Photo/Mike Derer, File)
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ADVANCE FOR MONDAY JAN. 28 AND THEREAFTER - FILE - In this Wednesday Sept. 18, 1996, file photo, Rep. Pat Schroeder, D-Colo. reacts as Colt Manufacturing Vice President Doug Overbury shows his company's Smart Gun during a Capitol Hill news conference. The gun, a standard-looking .40-caliber, semi-automatic pistol can only be activated from a pea-size radio transmitter worn on the wrist of an authorized shooter. When the White House recently called for pushing ahead with such new technology as part of President Obama’s plan to cut gun violence, the administration did not mention the concept’s embattled past. As with so much else in the nation's long-running divisions over gun rights and regulation, what sounds like a futuristic vision is, in fact, an idea that has been kicked around for years, sidelined by intense suspicion, doubts about feasibility and pressure tactics. (AP Photo/Mark Wilson)
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Sen. Dianne Feinstein, D-Calif. speaks during a news conference on Capitol Hill in Washington, Thursday, Jan. 24, 2013, to introduce legislation on assault weapons and high-capacity ammunition feeding devices. Congressional Democrats are reintroducing legislation to ban assault weapons but the measure faces long odds even after last month's mass school shooting in Newtown, Conn. The measure being unveiled Thursday is authored by Democratic Sen. Dianne Feinstein of California, who wrote the original assault weapons ban. That law expired in 2004 when Congress refused to renew it under pressure from the National Rifle Association. (AP Photo/Manuel Balce Ceneta)
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Sen. Charles Schumer, D-N.Y., speaks during a news conference with a coalition of members of Congress, mayors, law enforcement officers, gun safety organizations and other groups on Capitol Hill in Washington to introduce legislation on assault weapons and high-capacity ammunition feeding devices, Thursday, Jan. 24, 2013. (AP Photo/Manuel Balce Ceneta)
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FILE - In this Jan. 16, 2013, file photo, President Barack Obama listens at left as Vice President Joe Biden speaks about proposals to reduce gun violence in the South Court Auditorium at the White House in Washington. There is a legal avenue to get any gun you want somewhere in the U.S., thanks to the maze of gun statutes across the country and the lack of federal laws. An Associated Press analysis finds that there are thousands of laws, rules and regulations at the local, county, state and federal levels. (AP Photo/Carolyn Kaster, File)
Transocean falls as analyst cuts rating to 'Sell'
NEW YORK (
AP) —
Transocean fell more than 5 percent Friday as an analyst cut his rating on the oil drilling company partly because of rising costs and increasing downtime.
THE SPARK: Mike Urban of Deutsche Bank lowered Transocean to "Sell" from "Hold." He reiterated a $49 price target.
THE ANALYSIS: In a client note, Urban said that a fleet status report revealed a 7 percent increase in 2013 downtime. The analyst also said that the estimated downtime for 2014 of 2,131 days is up an additional 5 percent from this year and higher than what he expected.
Urban was also concerned that costs are climbing even as rates are flattening.
Billionaire investor Carl Icahn boosted his stake in Transocean last month to about 5.6 percent.
SHARE ACTION: Transocean Ltd.'s stock dropped $3.10, or 5.2 percent, to $56.20 in afternoon trading. The shares have traded in a 52-week range of $39.32 to $59.50.
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