DBS Vickers Securities in a Jan 17 research report says: "While 3Q11 earnings were disappointing and there are concerns arising from the outlook for softer global economic growth and uncertainty regarding its next CEO, Noble remains in a strong financial position.
"We expect Noble to book decent 4Q11 core profit of US$86.8 million (-67% y-o-y) versus a US$17.5 million loss in 3Q11 on recovery of commodity prices and reversal of mark-to-market currency losses.
"Proposed capital recycling through the divestment of its Agriculture segment and a merger of Gloucester Coal with Yanzhou Australia should crystallise value and contribute towards seed money for Noble for further investments going forward. Target price of $1.45. MAINTAIN BUY.
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