UPDATE: Morgan Keegan Lowers PT on Ensco to $64

Morgan Keegan is out with its report today on Ensco ESV, lowering its PT to $64 from $70. In its report, Morgan Keegan writes, "Based on recent indications from offshore drillers, rig activity is improving, but operating and maintenance costs are increasing at a faster pace. Thus we are cutting our 2H'11 and 2012 earnings estimates and price target. That said, we have increased utilization assumptions for GOM floaters and dayrates for uncontracted floaters. Based on the recent pullback, Ensco's significant backlog and deepwater exposure, we are maintaining an Outperform rating. We are lowering our price target to $64 from $70." Shares of ESV closed Tuesday at $43.81.