Company Name: NOBLE GROUP LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 1.40 |
CIMB Research raised its rating on commodities firm Noble Group to trading buy from neutral, citing attractive valuations following the stock’s recent underperformance, but kept its target price of $1.40.
Noble shares were up 0.8% at $1.225. The stock has fallen around 11% since Noble reported a 57% drop in quarterly net profit in late February, underperforming the 1.2% rise in the broader Straits Times Index.
Noble’s operating environment was improving, with better soybean crush margins in China and a general bottoming out of commodity prices, CIMB said, adding that liquidity has also returned as European banks resumed trade financing activities.
“With the worst of the downturn behind it, Noble is poised for sequential recovery in the first quarter of 2012,” CIMB said. It noted improved industry performance, with companies such as Cargill Inc recently posting earnings growth.
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