Noble Grp - Noble upgraded to Buy by UBS, raises target to $2.70

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED
Research House: UBS

UBS upgrades Noble Group (N21.SG) to Buy from Neutral, raises target price to $2.70 from $2.10 after tweaking assumptions in discounted cashflow valuation.



Says Fed’s QE2 could lend momentum to commodity supply chain manager’s earnings.



“This should lead to strong capital flows to emerging markets and reinforce commodity-intensive growth, thereby incentivising commodity prices and trade-volume growth.”

Expects improved margins for Noble’s Chinese soybean crushing business in 3Q10 to continue through 4Q10, while coal and oil prices could rise further due to winter demand from northern hemisphere.



Upgrades FY10-12 EPS estimates to US$0.08, US$0.11, US$0.12 from US$0.07, US$0.09, US$0.10 respectively. Shares +2.5% at $2.06.