Goldman Comments and Read-Through on Nobel (NE) Q2 Results
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Price: $45.46 --0%
Rating Summary:
18 Buy, 17 Hold, 8 Sell
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Today's Overall Ratings:
Up: 8 | Down: 12 | New: 1
Rating Summary:
18 Buy, 17 Hold, 8 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 1
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On Wednesday evening, Noble Corp. (NYSE: NE) reported Q2 EPS of $0.63, $0.07 better than the analyst estimate of $0.56. Revenue for the quarter came in at $1.02 billion versus the consensus estimate of $1.02 billion. In the view of Goldman's Waqar Syed, the report has implication for a number of stocks including Transocean Ltd. (NYSE: RIG), Diamond Offshore Drilling, Inc. (NYSE: DO), and Ensco plc (NYSE: ESV), Rowan Companies plc (NYSE: RDC), Atwood Oceanics, Inc. (NYSE: ATW), National Oilwell Varco (NYSE: NOV) and Cameron (NYSE: CAM).
"While NE expected near-term strength in the standard jack-up market, it was cautious over the intermediate term on the outlook for standard jack-ups owing to upcoming supply additions," said Syed. "We believe that declines in day-rates or extended downtime for idle 2nd/3rd/4th generation rigs will remain a headwind for companies like RIG, DO, ESV and NE that have high exposure to that market and have several contract renewals coming up. Similarly, NE, ESV and RDC have high exposure to the standard jack-up market, a segment that could see pressure by mid-2014."
"We are less positive on offshore drillers, and our only Buy-rated name in the group is ATW. Management commentary about the attractive economics of new-build rigs and statements that customers continue to demand high-spec new-build rigs are positive for rig manufacturers like Buy-rated NOV and CAM," he added.
Goldman Sachs has a Neutral rating on Noble Corporation with a price target of $49.00.
For an analyst ratings summary and ratings history on Noble Corporation (NYSE: NE) click here. For more ratings news on Noble Corporation click here.
Shares of Noble Corporation closed at $40.01 yesterday.
"While NE expected near-term strength in the standard jack-up market, it was cautious over the intermediate term on the outlook for standard jack-ups owing to upcoming supply additions," said Syed. "We believe that declines in day-rates or extended downtime for idle 2nd/3rd/4th generation rigs will remain a headwind for companies like RIG, DO, ESV and NE that have high exposure to that market and have several contract renewals coming up. Similarly, NE, ESV and RDC have high exposure to the standard jack-up market, a segment that could see pressure by mid-2014."
"We are less positive on offshore drillers, and our only Buy-rated name in the group is ATW. Management commentary about the attractive economics of new-build rigs and statements that customers continue to demand high-spec new-build rigs are positive for rig manufacturers like Buy-rated NOV and CAM," he added.
Goldman Sachs has a Neutral rating on Noble Corporation with a price target of $49.00.
For an analyst ratings summary and ratings history on Noble Corporation (NYSE: NE) click here. For more ratings news on Noble Corporation click here.
Shares of Noble Corporation closed at $40.01 yesterday.
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