Ensco (NYSE:ESV) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Ensco’s merger with Atwood Oceanics has been completed by the company. This will bring together two leading offshore drillers with premium assets that cover the world’s most prolific basins along with a diverse customer base. This will help the company in clinching new orders in spite of the ongoing commodity price volatility. Apart from the deal’s compelling strategic rationale, the companies expect to come up with cost synergies of $110 million over 2 years. While the bigger ‘Ensco’ should fare better, given the combined entity's size and scope of operations, it remains heavily exposed to offshore drilling's very weak fundamentals. Moreover, cash flow from core operations for Ensco has been declining steeply with no sign of improvement during 2017. We are concerned about Ensco’s weak balance sheet. All those weaknesses are reflected in Ensco’s unimpressive pricing chart snapshot of the last one year.<“
Several other equities research analysts have also recently weighed in on the company. Credit Suisse Group cut Ensco from an “outperform” rating to a “neutral” rating and set a $8.00 price objective on the stock. in a research note on Tuesday, January 23rd. They noted that the move was a valuation call. Jefferies Group set a $6.00 price objective on Ensco and gave the stock a “hold” rating in a research note on Thursday, January 4th. ValuEngine raised Ensco from a “sell” rating to a “hold” rating in a research note on Friday, December 1st. Susquehanna Bancshares set a $7.00 price objective on Ensco and gave the stock a “hold” rating in a research note on Friday, January 12th. Finally, Cowen set a $6.00 target price on Ensco and gave the company a “hold” rating in a research note on Thursday, January 11th. Four research analysts have rated the stock with a sell rating, thirteen have given a hold rating and six have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $7.07.
Ensco (NYSE:ESV) last issued its quarterly earnings data on Tuesday, February 27th. The offshore drilling services provider reported ($0.23) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.26) by $0.03. Ensco had a negative return on equity of 1.86% and a negative net margin of 16.48%. The company had revenue of $454.00 million for the quarter, compared to analysts’ expectations of $453.21 million. During the same period in the previous year, the firm posted $0.10 earnings per share. The firm’s revenue for the quarter was down 10.1% on a year-over-year basis. equities analysts predict that Ensco will post -0.98 EPS for the current year.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Private Advisor Group LLC purchased a new stake in shares of Ensco in the third quarter valued at approximately $100,000. Bedel Financial Consulting Inc. purchased a new stake in shares of Ensco in the fourth quarter valued at approximately $100,000. ARGA Investment Management LP purchased a new stake in shares of Ensco in the fourth quarter valued at approximately $113,000. Raymond James Financial Services Advisors Inc. purchased a new stake in shares of Ensco in the second quarter valued at approximately $116,000. Finally, Crossmark Global Holdings Inc. purchased a new stake in shares of Ensco in the third quarter valued at approximately $121,000. Hedge funds and other institutional investors own 92.17% of the company’s stock.
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Ensco Company Profile
Ensco plc is an offshore contract drilling company. The Company provides offshore contract drilling services to the international oil and gas industry. Its segments include Floaters, Jackups and Other. The Floaters segment includes its drillships and semisubmersible rigs, and provides contract drilling.
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