UPDATE: Jefferies & Company Upgrades ENSCO to Buy, Raises PT

In a report published Friday, Jefferies & Company upgraded its rating on ENSCO PLC

from Hold to Buy, and raised its price target from $66.00 to $70.00. Jefferies noted, “Offshore drillers likely lack the traditional dayrate catalyst in 1H13. We see fleet transformations (high grading) and 2014 EPS growth pushing stocks higher. But there are costs (capex) and risks (existing fleet obsolescence) that come with new rigs and we modify our valuation methodology to better reflect both. Consistent with this, we upgrade ESV to Buy from Hold ($70 PT), tweak ATW's PT up $2 to $58 and lower RIG, NE and DO PTs.” ENSCO PLC closed on Thursday at $57.00.