J.P. Morgan Lowers Ensco (ESV) Price Target To $52

J.P. Morgan analysts J. David Anderson, Adam Aron and Samantha Hoh maintained their Overweight rating for shares of Ensco plc ESV and lowered their price target to $52 per share, down from the previous price target of $60. Although the analysts agreed with Ensco plc's high exposure to the ultra deep market, they said there was a risk of the market becoming oversupplied, especially if Petrobras builds 28 newbuild rigs. The J.P. Morgan analysts wrote, "we continue to rate ESV Overweight with at $52 Dec 2010 price target down from $60 previously. Given our 2011 adjusted earnings estimate the stock still looks inexpensive compared to peers. ESV currently trades at 6.7x our 2011E adjusted earnings compared to the group at 7.0x; our price target assumes the stock appreciates to 9.0x, in line with our price target multiple for the group at 8.9x."