Wells Fargo Downgrades ENSCO International Plc (ESV) to Market Perform

January 24, 2014 8:14 AM EST
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Price: $11.32 +1.98%

Rating Summary:
    18 Buy, 21 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Wells Fargo downgraded ENSCO International Plc (NYSE: ESV) from Outperform to Market Perform with a price target of $55-$56 (from $62-$64).

Analyst Matthew D. Conlan said, "We are downgrading ESV to Market Perform and lowering earnings estimates and our valuation range. Our estimate revisions incorporate lower utilization for ESV's midwater rigs, including the presumed stacking of the ENSCO 5000, as well as lower dayrates for ENSCO’s 8500 series rigs ($450,000) and 6th-7th generation drillships ($525,000/day). These UDW dayrate estimates are below recent signings, but have further downside potential. We are decreasing our valuation range to $55-$57 from $62-$64, representing EBITDA multiples of roughly 7.5-7.7x 2014E EBITDA and roughly 6.0x 2015E EBITDA, a premium multiple to reflect ENSCO's high-quality fleet and free cash flow generation."

For an analyst ratings summary and ratings history on ENSCO International Plc click here. For more ratings news on ENSCO International Plc click here.

Shares of ENSCO International Plc closed at $52.61 yesterday.

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