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Ensco: Why 3 Analysts Revised Their Recommendations

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Consensus recommendations

Of the 35 analysts covering Ensco (ESV), three analysts gave “strong buy” recommendations, while eight analysts gave “buy” recommendations. Eighteen analysts gave the company a “hold” recommendation. Five analysts suggested a “sell” for Ensco, while two analysts suggested a “strong sell.”

Ensco’s average target price is $11.17—compared to its current market price of $8.32 on April 21, 2017. The target price implies potential upside of 34%.

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Consensus rating

According to Reuters, Ensco has a consensus rating of 2.8, which means a “hold.” The following are consensus ratings for other offshore drilling companies (XLE).

  • Noble (NE) – 3.03, which means a “hold.”
  • Seadrill (SDRL) – 3.73, which means a “sell.”
  • Diamond Offshore (DO) – 3.21, which means “hold.”
  • Atwood Oceanics (ATW) – 3.33, which means “hold.”

Recent upgrades

Three analysts revised their recommendation for Ensco since the beginning of the year. In February 2017, Credit Suisse upgraded Ensco from “neutral” to “outperform.” It raised the target price from $9.00 to $15.00. Credit Suisse also upgraded Transocean from “neutral” to “outperform.”

In January, Capital One Securities upgraded Ensco from “equal-weight” to “overweight.” Citigroup upgraded the stock from “neutral” to “buy.”

Target price changes

  • On April 11, 2017, Jefferies reduced its target price to $11 from $11.5. Jefferies has a “hold” rating on Ensco.
  • In February, Goldman Sachs raised Ensco’s target price from $11.00 to $11.50. It maintained a “neutral” rating on the stock.
  • In January, Deutsche Bank reduced the target price from $10.00 to $8.00, BMO raised the target price from $8.00 to $9.00, Susquehanna Financial raised the target price from $9.00 to $10.00, and Barclays raised the target price from $8.00 to $10.00.
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