Goldman Sachs Reiterates Neutral Rating, $70 PT on Ensco PLC Following Senior Management Meeting

In a report published Thursday, Goldman Sachs analyst Waqar Syed reiterated a Neutral rating and $70.00 price target on Ensco PLC ESV. In the report, Goldman Sachs noted, “We met with the senior management of ENSCO yesterday; key highlights of the meeting were: 1) Management is very frustrated with stock performance this year, and may be more aggressive in employing its $2bn share repurchase authorization in the near term. 2) Management remains focused on growth and will continue with its speculative newbuild strategy. 3) Management reiterated its superior financial performance, which involves industry-leading net income margins as well as its prudent corporate strategy of a methodical and ongoing fleet high-grading program. 4) ESV also stated that in 2012 and 2013 about 55% of its jackups underwent upgrade/survey, and in 2014/2015 that figure should fall to 25%, leading to improved jack-up utilization.” Ensco PLC closed on Wednesday at $57.15.