UPDATE 1-RESEARCH ALERT-S&P Equity Research cuts Ensco to sell

June 19 (Reuters) - S&P Equity Research downgraded offshore drilling contractor Ensco International Inc (ESV.N) to "sell" from "hold," saying it is increasingly concerned about the company's near-term prospects in the jackup rig market.

Analyst Stewart Glickman noted that the company now has nine jackup rigs sitting idle and believes the rising number of newbuild jackups will keep pressure on dayrates and utilization, especially for Ensco's lower-specification units.

Jackups are rigs that drill in shallow waters.

The analyst cut his 2009 earnings estimate for the company to $5.99 a share from $6.46 a share.

However, he raised his price target on Ensco's stock to $33 from $32 to include elevated peer multiples.

The shares of the Dallas-Texas based company were trading down 1.25 percent at $36.48 in mid-day trade on the New York Stock Exchange. (Reporting by Arundhati Ramanathan in Bangalore; Editing by Jarshad Kakkrakandy)