Wednesday, November 10, 2010

Noble Grp - Credit Suisse upgrades Noble to Outperform, ups target

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED
Research House: Credit Suisse


Credit Suisse upgrades Noble Group (N21.SG) to Outperform vs Neutral, raises target to $2.55 vs $1.65, given expectations of stronger 4Q, 37% EPS growth in FY11. Says Noble’s 3Q10 results “were strong, with 9-month earnings achieving 76%/78% of consensus/our FY10 estimates.” 



Adds, 178% on-quarter jump in core earnings supported by normalisation of SGA costs (down 17% on-quarter) driven by strength in the agricultural, energy segments, which generated 87% of total profit. 

Says tie-up with Berau Coal in Indonesia should in aggregate support expansion of energy pipeline going forward; raises forecasts by 7%-13% on stronger volumes, margin assumptions. 

“We see opportunities for Noble to utilise its strong balance sheet with the announcements of further earnings-enhancing deals.” 

Shares +3.3% at $2.20. 

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