Jefferies Revised Ensco’s Target Price

Target price revision

On July 26, after Ensco (ESV) released its second-quarter results, Jefferies raised the company’s target price to $6.5 from $6 and maintained a “hold” rating on the stock. Earlier in the month, Susquehanna raised Ensco’s target price to $7 from $5.

Jefferies Revised Ensco’s Target Price

Revision

So far in 2018, two analysts downgraded Ensco, while one analyst upgraded the stock. In January, Piper Jaffray downgraded Ensco to “neutral” from “overweight.” In April, Credit Suisse upgraded Ensco to “outperform” from “neutral.” In June, HSBC downgraded Ensco to “hold” from “buy.”

Consensus rating

According to Reuters, the consensus rating on a scale of one (strong buy) to five (strong sell) for Ensco is 2.59, which means a “hold.” Below are the consensus ratings for other offshore drillers (OIH):

  • Noble (NE): ~3.23, which means a “hold”
  • Transocean (RIG): ~2.66, which means a “hold”
  • Rowan Companies (RDC): 2.48, which means a “buy”
  • Diamond Offshore (DO): 3.54, which means a “sell”

Analysts’ recommendations

For Ensco, 29 analysts provided recommendations. Three analysts recommended a “strong buy,” ten analysts recommended a “buy,” 12 analysts recommended a “hold,” and four analysts recommended a “sell.” None of the analysts recommended a “strong sell.”

Target price

The consensus 12-month target price for Ensco is $6.83, which implies a potential downside of 4.74% from its market price of $7.17 on July 26.