Wells Fargo Downgrades Noble Corporation (NE) to Market Perform

January 24, 2014 8:18 AM EST
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Price: $7.25 --0%

Rating Summary:
    19 Buy, 19 Hold, 8 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 10 | New: 7
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Wells Fargo downgraded Noble Corporation (NYSE: NE) from Outperform to Market Perform with a price target of $33-$35 (from $46-$48).

Analyst Matthew D. Conlan said, "We are downgrading NE to Market Perform and lowering earnings estimates and our valuation range. Our estimate revisions incorporate lower utilization for NE's older midwater and deepwater semis, especially the Ferrington, Driller, and Wolff, which we expect to all see substantial idle time, and perhaps one or more could even get cold stacked. We are decreasing our valuation range to $33-$35 from $46-$48. Our valuation range is based on 3.5x 2015E EBITDA for NE's soon-to-be-spun-out standard spec assets ("Spinco") and a 5.5x multiple of 2015E EBITDA from the remaining assets ("Remainco"), yielding a blended 2015E EBITDA multiple of 5.0-5.2x."

For an analyst ratings summary and ratings history on Noble Corporation click here. For more ratings news on Noble Corporation click here.

Shares of Noble Corporation closed at $33.13 yesterday.

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