Zacks Investment Research Upgrades Ensco Rowan (ESV) to Buy

Zacks Investment Research upgraded shares of Ensco Rowan (NYSE:ESV) from a hold rating to a buy rating in a report issued on Friday, Zacks.com reports. The firm currently has $10.00 price objective on the offshore drilling services provider’s stock.

According to Zacks, “A leading supplier of offshore contract drilling services, EnscoRowan operates a high-quality and technically-advanced fleet of more than 80 rigs that include ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups. It is poised to benefit from the market, given its technologically advanced and versatile drilling fleet. The recent conjunction between Ensco and Rowan is expected to create around $1.1 billion of capitalized value from cost synergies. Moreover, EnscoRowan’s contracted revenue backlog of $2.6 billion is stirring. The company reported adjusted first-quarter 2019 loss of $1.69 a share, narrower than the Zacks Consensus Estimate of a loss of $1.79, on the back of Higher utilization of Jackups. A such, the stock offers tremendous upside potential from its current levels. “

Several other brokerages also recently issued reports on ESV. Piper Jaffray Companies set a $16.00 price target on Ensco Rowan and gave the stock a hold rating in a report on Tuesday, April 23rd. ValuEngine upgraded Ensco Rowan from a buy rating to a strong-buy rating in a report on Thursday, April 11th. Morgan Stanley began coverage on Ensco Rowan in a report on Tuesday, April 16th. They set an overweight rating and a $25.00 price target for the company. Barclays reiterated a sell rating and set a $13.00 price target on shares of Ensco Rowan in a report on Sunday, May 5th. Finally, Royal Bank of Canada began coverage on Ensco Rowan in a report on Friday, May 17th. They set an outperform rating and a $15.00 price target for the company. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and ten have issued a buy rating to the stock. The company has a consensus rating of Hold and an average price target of $10.17.

Shares of Ensco Rowan stock opened at $8.63 on Friday. Ensco Rowan has a 12-month low of $8.48 and a 12-month high of $38.04. The firm has a market cap of $1.70 billion, a P/E ratio of -1.61 and a beta of 2.09. The company has a quick ratio of 2.34, a current ratio of 2.34 and a debt-to-equity ratio of 0.64.

Ensco Rowan (NYSE:ESV) last announced its quarterly earnings results on Wednesday, May 1st. The offshore drilling services provider reported ($1.69) earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($1.79) by $0.10. Ensco Rowan had a negative return on equity of 7.65% and a negative net margin of 40.72%. The business had revenue of $405.90 million during the quarter, compared to the consensus estimate of $405.12 million. During the same quarter in the prior year, the company posted ($0.32) earnings per share. Ensco Rowan’s revenue was down 2.7% compared to the same quarter last year. On average, equities analysts anticipate that Ensco Rowan will post -5.23 EPS for the current year.

Hedge funds have recently bought and sold shares of the business. Nisa Investment Advisors LLC purchased a new position in Ensco Rowan in the first quarter worth $28,000. Quantamental Technologies LLC purchased a new position in Ensco Rowan in the fourth quarter worth $36,000. Hellman Jordan Management Co. Inc. MA purchased a new position in Ensco Rowan in the fourth quarter worth $38,000. Leavell Investment Management Inc. purchased a new position in Ensco Rowan in the fourth quarter worth $39,000. Finally, Piedmont Investment Advisors Inc. purchased a new position in Ensco Rowan in the fourth quarter worth $41,000.

Ensco Rowan Company Profile

Ensco Rowan plc provides offshore drilling services in various water depths worldwide. It operates a rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups. The company's offshore fleet include 16 drillships, 12 semisubmersibles, 54 jackups, and 2 deepwater managed units.

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