Credit Suisse Reiterates Overweight on Ensco (ESV)

Credit Suisse is out with its report today on Ensco ESV, reiterating Overweight. In a note to clients, Credit Suisse writes, "We maintain our 12-month target price of $71 per share, which is at parity with our DCF model, and reiterate our outperform rating on ESV shares on an attractive relative valuation, near-term catalysts in the deepwater, and upside earnings surprise potential in 2012, as we believe there is upside to the company's guidance of $50 MM in cost synergies from the PDE merger. ESV shares have underperformed peers by 6% YTD, which creates a compelling entry-point given the company's unmatched history of under-promising and over-delivering. We would expect some arb-related pressure on shares to abate following deal closure, which is expected at month's end." Shares of ESV closed Monday at $53.56, down 0.94% from Friday's close.