Jefferies Remains Bullish on ENSCO International (ESV) as Demand Continues to Show Signs of Growth
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Price: $8.27 --0%
Rating Summary:
19 Buy, 16 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
19 Buy, 16 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is maintaining its Buy rating and $67 price target on shares of ENSCO International Plc (NYSE: ESV) following a two day investor meeting with management in Europe.
The firm reports that the integration of Pride’s operations is quickly moving forward as management already has a complete organization chart in place all the way down to the lowest levels.
The company continues to have a bullish mentality and indicated that tender activity and discussions for jack-up work remains extremely active. Jefferies believes that the jack-up market is closer to an inflection point than the market is currently discounting, providing upside for contractors with meaningful jack-up exposure like ESV, Noble Corp. (NYSE: NE), Rowan (NYSE: RDC), and Hercules (Nasdaq: HERO).
ESV commented that contract durations are getting longer and that the lead time from inquiry to project start-up is beginning to increase. The firm notes that historically this has been a good leading indicator of a tightening market.
ESV indicated that demand for UDW rigs in the GOM is increasing as operators move closer to receiving permits and inquiring about mobilizing additional high spec UDW rigs into the region.
An analyst at Jefferies comments, "ESV indicated that is already in fairly serious dialog with customers regarding work for its two Super A class newbuild jack-ups that are scheduled for delivery in 2013. Given the specialized nature of these rigs, our dayrate expectations for these rigs is currently $200,000."
For more ratings news on ENSCO International Plc click here and for the rating history of ENSCO International Plc click here.
Shares of ENSCO International Plc closed at $51.39 yesterday.
The firm reports that the integration of Pride’s operations is quickly moving forward as management already has a complete organization chart in place all the way down to the lowest levels.
The company continues to have a bullish mentality and indicated that tender activity and discussions for jack-up work remains extremely active. Jefferies believes that the jack-up market is closer to an inflection point than the market is currently discounting, providing upside for contractors with meaningful jack-up exposure like ESV, Noble Corp. (NYSE: NE), Rowan (NYSE: RDC), and Hercules (Nasdaq: HERO).
ESV commented that contract durations are getting longer and that the lead time from inquiry to project start-up is beginning to increase. The firm notes that historically this has been a good leading indicator of a tightening market.
ESV indicated that demand for UDW rigs in the GOM is increasing as operators move closer to receiving permits and inquiring about mobilizing additional high spec UDW rigs into the region.
An analyst at Jefferies comments, "ESV indicated that is already in fairly serious dialog with customers regarding work for its two Super A class newbuild jack-ups that are scheduled for delivery in 2013. Given the specialized nature of these rigs, our dayrate expectations for these rigs is currently $200,000."
For more ratings news on ENSCO International Plc click here and for the rating history of ENSCO International Plc click here.
Shares of ENSCO International Plc closed at $51.39 yesterday.
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