Analyst Forecasts for Ensco ahead of 4Q15 Earnings



Wall Street’s forecasts for Ensco

In this final part of our series, we’ll look at the recent Wall Street analysts’ forecasts for Ensco (ESV) ahead of the company’s 4Q15 earnings.

Article continues below advertisement

Consensus rating for Ensco

Approximately 16% of analysts tracking Ensco rate it a “buy” or some equivalent. Approximately 56% rate the company a “hold” or an equivalent, and the remaining 28% have rated it as “sell.” Ensco makes up 0.18% of the Vanguard Energy ETF (VDE).

By comparison, approximately 3% of analysts tracking SeaDrill Limited (SDRL), Ensco’s peer, have rated it a “buy” or some equivalent, and approximately 36% of analysts tracking it, have rated it as “hold.” The remaining 61% have rated it a “sell.”

Analyst recommendations for Ensco

When it comes to individual recommendations, BMO Capital Markets, the investment banking subsidiary of Canadian Bank of Montreal, gave Ensco a target price of $10. Ensco currently trades near $8.4, implying a 19% return over the next 12 months. Goldman Sachs (GS) has a target price of $14.5 for ESV—one of the company’s highest target prices—and at its current share price, this implies a 73% return over the next 12 months.

Among large investment banks, Morgan Stanley (MS) has given Ensco a target of $6.80, one of its lowest target prices. This implies a negative ~19% return from Ensco over the next 12 months.

Analyst targets for Ensco

While the highest target price for ESV is $25, the lowest is $6.8. But the median target price, surveyed among the sell-side analysts, for ESV is ~$9.9. ESV is currently trading at ~$8.4, implying a ~49% upside at its median price.

For ongoing analysis of the oil and gas industry, keep checking in with Market Realist’s Energy and Power page.


More From Market Realist