Deutsche Bank Downgrades ENSCO International Plc (ESV) to Hold, See Dayrates Flattening

Deutsche Bank downgraded ENSCO International Plc (NYSE: ESV) from Buy to Hold with a price target of $58.00 (from $56.00).

The firm comments, "For ESV, adjustments to subsequent quarters/years reflect the most recent fleet status updates as well as our updated cost assumptions. We are now assuming 7% costs increase in subsequent years as we expect cost pressure especially on the labor front to continue to drive costs higher. Our 2012, 2013 and 2014 estimates go to $5.44, $7.59 and $8.10 from $5.49, $7.75 and $8.35, respectively. Although offshore demand remains strong and ESV is arguably the best managed offshore driller, we see dayrates flattening even as costs rise which takes our rating to HOLD from BUY.

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 $57.22 yesterday.

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