S&P Capital IQ Reiterates its BUY Rating on Noble Corp

October 21 00:00 2011

NEW YORK, October 21 (RainbowNewsLine.com) – Analyst Stewart Glickman of S&P Capital IQ reiterates his BUY rating on the shares of Noble Corp ( NYSE:NE), while reducing his estimates for the company.

Analyst Stewart Glickman, in a research note published yesterday mentions that the company reported Q3 EPS short of the estimates excluding charges. The total operating days were less than the estimates and the utilization improved from 1H01 onwards, the analyst says. The widening costs and lower contract drilling revenues were unexpected, the analyst mentions. The drilling margins, however, improved in Q2 based on better day rates and utilization irrespective of missing the targets, the analyst adds. The newbuild program, contract backlog , lower capex constraints and improved GOM permit process are likely to enhance the company’s 2012 EPS growth, according to the analyst. The EPS estimate for 2011 has been reduced from $2.00 to $1.85.

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