Seeking Alpha

Ensco downgraded at Barclays on concerns over operational execution

  • Ensco (ESV -2.1%) is downgraded to Equal Weight from Overweight with a $60 price target (from $82) at Barclays, which sees continued high levels of unplanned downtime prompting concerns with ESV's operational execution, despite its high-quality mixed fleet of relatively standardized assets.
  • The firm prefers ultra-deepwater pure-plays, including Ocean Rig (ORIG +2.1%) and Pacific Drilling (PACD +2.6%), and catalyst-rich offshore drillers led by Noble Corp. (NE -0.4%), which is undergoing operational improvements and is moving forward with a meaningful non-core asset divestiture.
Comments (1)
  • Bingy77
    , contributor
    Comments (117) | Send Message
     
    Does anyone else feel like the target price cut is a little extreme? That is ridiculous.
    3 Sep 2013, 04:20 PM Reply Like
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