UPDATE: Pritchard Capital Upgrades ENSCO to Buy; Strengthening Fundamentals

Pritchard Capital increases its price target from Hold to Buy on ENSCO (NYSE: ESV) and establishes its price target at $70 a share.

Pritchard Capital notes, "ESV has painted a very bullish picture for the offshore landscape going forward. We continue to see contract durations lengthen as dayrates trend upward. Demand for deepwater fixtures remains strong, driven by the GOM, Brazil, and Africa. Continued exploratory successes offshore will increase the upside potential for the deepwater market. Rig availability for this segment is very limited for 2012, and operators have now shifted the focus to 2013 and beyond. The Midwater segment continues to show improvement, especially for high specification rigs. The strongest regions for this segment have been the GOM, Mexico, and North Sea; all displaying exceptionally high levels of demand. ESV has demonstrated its ability to limit unplanned downtime, which has led to improved utilization across the fleet. Additionally, the Company is actively focusing on keeping its operating expenses down.

ESV closed at $54.22 on Thursday.