UPDATE: Societe Generale Raises PT on Ensco plc on Favorable Supply Balance

In a report published Wednesday, Societe Generale analyst Edward Muztafago reiterated a Buy rating on Ensco plc

, and raised the price target from $73.00 to $76.00. In the report, Muztafago noted, “Deepwater day-rates have remained flat for several quarters, and some on the Street are questioning the potential for another inflexion given the large number of rigs for 2014 delivery. ESV noted that a similar number of rigs were destined for delivery at this time last year and dayrates still improved. The company believes sufficient pent-up demand still remains to add more deepwater rigs to its fleet, and it will even consider building additional deepwater rigs on spec. This supports our view that deepwater markets may still be appx. 50 rigs short of what is needed to drill indicated project demand through 2017.” Ensco plc closed on Tuesday at $57.70.