NEW YORK (TheStreet) -- Transocean (RIG - Get Report)  shares are jumping 3.36% to $14.60 on Monday after Guggenheim Partners upgraded the company along with several offshore drillers to "buy" from "neutral."

For the first time in almost two years, the firm said that it's siding with the bulls as it believes that global oil market will start to tighten in the second quarter of 2016.

Specifically, oil prices are projected to increase further and faster than the "lower for longer" consensus estimates, Barron's.com reports.

Additionally, offshore drillers will benefit more from the "rising tide of fund flows into the energy sector than from any improvement in industry fundamentals," analysts noted.

Transocean stock is also getting a lift from higher oil prices as traders stayed hopeful ahead of this week's OPEC meeting, Reuters said.

Crude oil (WTI) is higher 1.53% to $42.35 per barrel and Brent crude is climbing 0.8% to $45.22 per barrel, according to the CNBC.com index.

Based in Switzerland, Transocean provides offshore contract drilling services for oil and gas wells worldwide.

Separately, TheStreet Ratings team rates TRANSOCEAN LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate TRANSOCEAN LTD (RIG) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has decreased to $648.00 million or 26.53% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, TRANSOCEAN LTD has marginally lower results.
  • RIG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 42.79%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, TRANSOCEAN LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 30.8%. Since the same quarter one year prior, revenues fell by 29.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • RIG's debt-to-equity ratio of 0.64 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that RIG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.03 is high and demonstrates strong liquidity.
  • You can view the full analysis from the report here: RIG