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NYSE BUY Fundamental research indicates 23% upside in the NYSE common stock over the next 6–12 months.
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We have calculated thethe
targetfull
pricereport
based onfree of charge
fundamental factors,atusing a weighted average of target
Common http://www.iirgroup.com/researchoracle/viewreport/show/20298
prices obtained through the DCF and comparative valuation methodologies. We continue to take a 6–
12 month investment horizon for this stock as the market in which the company operates is highly
Stock cyclical and therefore trends can be captured more accurately within a shorter investment horizon.
Ticker: NE
Target price: US$72.80
Current price: US$59.22 We upgrade the NYSE common stock from a HOLD to a BUY with a 6-12 month target price of
US$72.80.
European BUY The European stock is expected to increase by approximately 30% over the next 6-12 months as the
23% fundamental upside in the NYSE common stock is augmented by 6% upside, purely attributable
Stock1 to the anticipated appreciation of the US dollar against the euro and a reduction in the discount by 1%
Ticker: NE.F over the same period.2
Target price: €48.20 .
Current price: €37.02 We upgrade the European stock from a HOLD to a BUY with a 6-12 month target price of €48.20.
Report summary
Noble Corporation (Noble) reported robust top- and bottom-line growth during 1Q 08 supported by
higher average dayrates for its units. Higher demand for offshore rigs in an environment of rising
hydrocarbon prices supported an increase in dayrates during the quarter. Going forward, we remain
optimistic of a sustained increase in demand for the company’s products given rising levels of E&P
spending by energy companies as we forecast oil prices to continue to increase. The company
operates its rigs in major international markets and already has a strong contract backlog. Moreover,
Noble plans to construct a number of rigs in line with its capital expenditure plans in order to meet an
anticipated increase in demand. Given our fundamental outlook and current prices levels, we remain
optimistic about future upside potential in Noble’s NYSE stock and believe it is an attractive
investment opportunity.