Global Hunter Securities Downgrades ENSCO International Plc (ESV) to Neutral

Global Hunter Securities downgraded ENSCO International Plc (NYSE: ESV) from Buy to Neutral with a price target of $53.00 (from $53.00).

Analyst Mark Brown commented, "ESV telegraphed an upcoming multi-year award for the DS-8 newbuild drillship, but we believe this positive news will be lost by continued offshore market challenges. We now assign the stock a Neutral rating (Buy previously) and $53 price target (unchanged), which implies an 8.2x P/E multiple on our 2015 EPS estimate and a 6.5x multiple on 2015E EBITDA. ESV has demonstrated strong cost management and operating utilization, but it is still likely to face the same contracting challenges and dayrate compression as its peers. We consider ESV shares fairly valued given that much of the uncertain contracting environment over the next 12 to 18 months appears discounted in the stock, while catalysts appear to be limited."

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 $50.25 yesterday.

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