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Noble’s Analyst Recommendations at the Start of 2018

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Noble

Noble (NE) was the third-best performer among top offshore drillers in terms of market returns in 2017. In this final part of our series, we’ll discuss how analysts view the stock.

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Analyst recommendations

According to Reuters, the consensus rating for Noble is 3.06, which means a “hold.” The following are the consensus ratings for other offshore drilling stocks (IYE):

  • Transocean (RIG): 2.7, or “hold”
  • Ensco (ESV): 2.59, or “hold”
  • Rowan Companies (RDC): 2.7, or “hold”

Of the 34 analysts giving recommendations for Noble, 29% of the analysts recommend a “buy” or some equivalent for the stock, while 41% of the analysts rate the stock as a “hold.”

The remaining 29% recommend a “sell” for NE stock. Its consensus 12-month target price of $4.64 implies a potential downside of 19.2%, based on its current market price of $5.7 on January 11, 2018.

Recent analyst changes

While it’s important to look at analyst ratings, recent changes to recommendations and target prices provide insight into the latest changes in the market sentiment toward a stock.

In the past six months, no analyst has revised his or her recommendation on Noble stock, but many analysts have revised their target prices for NE.

On January 12, 2018, Wells Fargo raised its target price for NE to $5 from $4, while Susquehanna raised its target price to $5 from $4. On January 11, Simmons raised its target price to $3.15 from $2.85, and Cowen and Company raised its target price for NE to $5 from $3.

Earlier in January, Citigroup raised its target price for NE to $5.5 from $4.7, and Jefferies raised its target price for NE to $6.0 and maintained a “buy” rating on the stock.

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