Company Name: NOBLE GROUP LIMITED
| Research House: UOB KayHian | Price Call: HOLD | Target Price: 1.17 |
Noble (N21.SG) is down 2.4% at $1.22 in solid volume, but the decline may be as much due to Monday's 2.0% rise as news Argentina suspended it from a key grain registry for alleged tax evasion; a person at Noble said the suspension wouldn't impact operations.
"A Noble spokesman said the exclusion will only result in a slower procedure to reimburse the VAT and the firm was in the process of appealing," notes Eugene Ng, an analyst at UOB KayHian, in a note, adding similar measures were taken against other major grain exporters. "If Noble is subjected to higher tax rates, we believe there could be some short-term decline in grain volumes from Argentina. However, impact to Noble's bottomline is not likely to be material."
He rates Noble Hold with a $1.17 target. Noble could see some added pressure as 13.2%-owned Yancoal (YAL.AU) said heavy rainfall disrupted production at its Yarrabee and Middlemount open cut mines in central Queensland state, with Middlemount output expected to be affected for at least three weeks.
No comments:
Post a Comment