Friday, March 4, 2011

CIMB ups Noble to $2.70, keeps outperform

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

CIMB has raised its target price for Singapore-listed commodity firm Noble Group (NOBG.SI) to $2.70 from $2.60 and kept its outperform rating.

CIMB has cut its earnings per share estimates for Noble by 4-5% for 2011-2013 to reflect the dilution from its share placement.

Noble said it plans to place 306.5 million shares at $2.07 each, representing a 5% discount to its closing price of $2.18 on Thursday.
However CIMB said it expects Noble's shares to see potential catalysts from earnings-accretive acquisitions and higher coal prices.

“We believe there is earnings upside from still-strong commodity prices, especially coal, while the new capital raised will likely lead to more acquisitions and faster expansion,” CIMB said in a report.
At 9:43 a.m., shares of Noble were 2.3% lower at $2.13, and have fallen 1.8% since the start of the year.

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