NEW YORK Jan 13 Shares of Ensco Plc,
the world's second-largest offshore driller, could rise to $70
as the company benefits from growing demand for deepwater
drilling, Barron's said.
Ensco's shares have rallied by nearly 28 percent in the past
year to $61.50 and are likely to continue to rise as earnings
improve, the financial weekly said in its Jan. 14 edition.
The company also pays a 2.4 percent dividend, which means
shareholders could see a total return of more than 15 percent in
the next year, Barron's said.
Ensco's shares trade at 8.7 times this year's expected
earnings, but the company may merit a richer valuation of around
10 times due to its free cash flow yield of 6 percent, which is
the best in the industry, Barron's said.
The company also benefits from a highly regarded management
team and a young fleet of deepwater rigs, the paper said.