BofA/Merrill analyst Chase Mulvehill reinstated coverage of Transocean with a Neutral rating and $6.50 price target. While Transocean is the largest offshore driller globally, Mulvehill tells investors in a research note that he thinks its backlog's cash flow benefit is offset by its high leverage and near term capital requirements, restricting its ability to generate free cash flow until 2022. Notwithstanding the estimated ~$1B cash burn through year-end 2021, the analyst contends that Transocean looks the best on valuation, balance sheet and contract coverage in his oil space coverage.