Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED
Nomura Research in a Nov 22 research report says: "Noble's weak 3Q (losses of USD27 million, gross profit declined 45% y-o-y and 45% q-o-q) and the CEO's exit has led to sharp negative sentiment. The stock has traded 6% of its market cap over last week and is down 30% since results.
"Though we think earnings will rebound sharply in CY12 (4Q may see some recovery), the poor results and the management departure overhang may prevent significant re-rating in the near term. Positively, 3Q volume growth was strong (34% y-o-y and 25% q-o-q), showing strong business reach.
"After correcting recently, Noble now trades at YTD lows and post-crisis trough valuations. We think the floor is near, and these are good entry points for long-term exposure. We cut our CY12F earnings by 14%. Target price of $1.70. MAINTAIN BUY."
Company Name: NOBLE GROUP LIMITED
| Research House: Nomura | Price Call: BUY | Target Price: 1.70 |
Nomura Research in a Nov 22 research report says: "Noble's weak 3Q (losses of USD27 million, gross profit declined 45% y-o-y and 45% q-o-q) and the CEO's exit has led to sharp negative sentiment. The stock has traded 6% of its market cap over last week and is down 30% since results.
"Though we think earnings will rebound sharply in CY12 (4Q may see some recovery), the poor results and the management departure overhang may prevent significant re-rating in the near term. Positively, 3Q volume growth was strong (34% y-o-y and 25% q-o-q), showing strong business reach.
"After correcting recently, Noble now trades at YTD lows and post-crisis trough valuations. We think the floor is near, and these are good entry points for long-term exposure. We cut our CY12F earnings by 14%. Target price of $1.70. MAINTAIN BUY."
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