UPDATE: Citi Lowering Price Target On Ensco

Citi Investment Research is out with a research report on Ensco plc ESV and is lowering its price target to $51 from $56, and it has a Hold rating on shares. In a note to clients, Citi Investment Research writes, "The key takeaway for us is that ESV will likely achieve greater EPS accretion from the Pride deal than previously believed based on its generally favorable operating cost, D&A, G&A, and tax rate guidance. We have raised our EPS estimates (see table below) driven by further evidence of its renewed focus on managing cost pressures with its increased scale and relatively young deepwater fleet. Our 2012 EPS of $6.50 is now significantly higher than its initial guidance on the Pride announcement (February 4, 2011) that the transaction would be 2012 EPS-accretive by 10%+ ($5.62 vs. $5.11 consensus at that time)." Shares of ESV gained $3.39 yesterday to close at $43.81, a gain of 8.4%.