Noble Group upgraded to neutral by CIMB

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED

Research House: CIMB

Price Call: HOLD

Target Price: 1.43

CIMB Research upgraded Singapore-listed commodity trading firm Noble Group to neutral from underperform and raised its target price to $1.43 from $0.99, reported Reuters.

By 11:36 p.m., shares of Noble were little changed at $1.495, and have gained about 32&% since the start of the year.   

CIMB said it has upgraded Noble, as improving leading economic indicators suggest global economies have averted a recession.

The brokerage expects Noble to return to profitability in the fourth quarter, and estimates the company will report a net profit of US$82.6 million ($103.6 million).

However, CIMB cautioned that Noble’s share price rally has run ahead of its fundamentals and said investors should wait for a pullback before buying its shares.