Oppenheimer Reduces Ensco 2011 Estimates; Raises PT To $57

Following a fleet status update by Ensco ESV, Oppenheimer is reducing its 2011 estimates on heightened concern that the ENSCO 8503 UDW new build (10,000' semi) may see delays in the start of its contract. “Additional shipyard days for high-spec jackups relative to our model also weigh on our 2011 estimates,” Oppenheimer writes. “However, we are optimistic longer term given the still upward trajectory of high spec JU rates demonstrated by the report.” Oppenheimer added that as it begins to focus more on 2012 numbers, “we are raising our price target to $57 (from $50), or ~9.5x 2012E EPS, in line with the stock's five-year average.” Ensco currently trades at $47.60.