Morgan Keegan Lowers PT on Ensco to $56

Morgan Keegan is out with its report today on Ensco

, lowering its PT from $59 to $56. In its report, Morgan Keegan writes, "We are lowering our price target to $56 from a prior $59. Our updated price target is based on 10.0x our 2012 earnings estimate of $5.60/share. Given the macro-economic overhangs, significant newbuild capacity and with the company expected to be free cash flow negative through 2012, we believe employing the lower end of our target multiple range is reasonable. Considering positive fundamentals for jackups and deepwater assets, Ensco's extensive backlog and upside relative to our current price target, we are maintaining an Outperform rating on Ensco." At the time of posting, shares of ESV were trading at $42.57, down 0.28% from Monday's close.