Shares of Transocean surged as much as 11 percent Thursday after reporting earnings that easily topped Wall Street expectations.
The stock later pared its gains, but still ended the day 6 percent higher.
On Wednesday, Transocean reported adjusted earnings of 25 cents a share on $903 million in revenue. Analysts had expected the company to post earnings per share of 14 cents on revenue of $861.9 million, according to a Thomson Reuters consensus estimate.
The stock was subsequently upgraded to "buy" from "hold" at Canaccord Genuity. The firm raised its price target to $11 from $9, saying that the combination of Transocean's debt management and cost trends have resulted in a balance sheet that is "looking significantly more robust."
Even with Thursday's gains, Transocean shares are down 20 percent this year.