CLSA Raises Ensco International (ESV) Price Target To $50
March 17, 2010 10:19 AM
CLSA Asia Pacific Markets analysts Mark S. Urness and Stephanie Cheng maintained their Outperform rating for shares of Ensco International plc (NYSE: ESV), while raising the price target from $48 to $50.
The analysts revealed that offshore drilling contractors have said that inquiry and activity levels have risen in the jackup markets.
They said that Ensco International will only experience marginal downtime as it upgrades and repairs its existing rigs.
The CLSA Asia Pacific Markets analysts wrote, "Ensco International released a fleet status report on 15 March. Several contract extensions and new contracts for the jackup fleet were more than enough to offset expected downtime for upgrades and repairs on the deepwater fleet. Activity is clearly picking up, which should continue to bode well for the company's available fleet. We are increasing our 2010 EPS estimate to $4.05 from $4.00 and our 2011 EPS to $5.00 from $4.75."
