Noble Group cut to "hold", target slashed 30% to $1.12 by DBS Vickers

Stock Name: Noble
Company Name: NOBLE GROUP LIMITED

Research House: DBS Vickers

Price Call: HOLD

Target Price: 1.12

SINGAPORE (Feb 27): DBS Vickers has downgraded Noble Group to "hold" from "buy" and slashed its price target from $1.60 to $1.12, which is based on 13 times projected earnings and 1.15 times book value.

"The key question is whether Noble will re-rate near term once the noise surrounding Iceberg Research dies down," DBS Vickers analyst Mervin Song wrote in a note today. "Our answer is 'no'."

The company continues to face headwinds from weak coal and iron ore markets, continuing losses from its agriculture business, as well as foreign-exchange volatility, he said.