- Ensign Energy Services Inc (TSX:ESI) (OTC:ESVIF) has been upgraded to Outperform from Sector Perform, with the price target raised to C$6 from C$3.35 by RBC Capital analyst Keith Mackey.
- The analyst believes the risk/reward equation has moved in the company's favor as global rig counts increase and North American rig utilization tightens.
- Mackey says that Ensign should generate meaningful FCF in the next upcycle, through revenue and margin expansion coupled with relatively limited new capital investment.
- Price Action: ESI shares are trading lower by 0.89% on TSX at C$4.45, and ESVIF is lower by 3.25% at $3.45 on the last check Thursday.
