UPDATE: Deutsche Bank Downgrades ENSCO Amid Concerns For The Offshore Drilling Sector

On Monday morning, Deutsche Bank analyst Mike Urban downgraded shares of ENSCO plc (NYSE: ESV) from Hold to Sell and lowered the price target from $52 to $41.

Urban's downgrade comes amid beliefs that offshore drilling is in the midst of a wholesale re-capitilzation. Commenting on this, "We see significant further deterioration in the offshore drilling market as relatively flat demand is met with a relentless surge of new supply... More problematic is the increasing likelihood that a huge chunk of the existing fleet will ultimately become impaired and/ or obsolete."

Amid the downgrade, shares of ENSCO have dropped ~1.6 percent in the pre-market session.