UPDATE: Deutsche Bank Downgrades ENSCO Amid Concerns For The Offshore Drilling Sector

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.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorDowngradesPrice TargetAnalyst RatingsDeutsche BankMike Urban
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!