Based on its performance against its peers, Wells Fargo (NYSE:WFC) said they consider ENSCO International relatively inexpensive, and upgraded them to "Outperform."
"We think ESV is comparatively cheap today, lagging the upward stock performance of its peers as investors have become more optimistic in the offshore drilling industry over the past month. While we continue to believe the entire offshore drilling group is still somewhat undervalued due to continued uncertainty regarding the future of GOM drilling, we think ESV is particularly attractive as a high-quality company trading at a discounted valuation to the group versus our NAV estimates and EBITDA metrics."
Concerning their valuation range, Wells increased it on ENSCO from $46-$47 to $54-$56.
ENSCO closed in New York Friday at $47.54, gaining $0.04, or 0.08 percent.
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