On Monday morning, Deutsche Bank analyst Mike Urban downgraded shares of ENSCO plc ESV from Hold to Sell and lowered the price target from $52 to $41.
Urban's downgrade comes amid beliefs that offshore drilling is in the midst of a wholesale re-capitilzation. Commenting on this, "We see significant further deterioration in the offshore drilling market as relatively flat demand is met with a relentless surge of new supply... More problematic is the increasing likelihood that a huge chunk of the existing fleet will ultimately become impaired and/ or obsolete."
Amid the downgrade, shares of ENSCO have dropped ~1.6 percent in the pre-market session.
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