Cowen transferred coverage on the offshore drillers to Vaibhav Vaishnav, who said his favorite names in the group include Ensco (ESV), Diamond Offshore (DO), and Atwood Oceanics (ATW). He said his research reflects downside to current stock prices as near-term his assumptions are for lower day rates, but sees the group's three years of underperformance and underlying bid to commodity prices supporting the stocks. Other names transferred to his coverage include Noble Corp. (NE), Rowan Corp. (RDC), and Transocean (RIG). All names in his coverage are Market Perform rated.