Noble Corp (NE) PT Cut To $3.50 At Credit Suisse

Credit Suisse analyst, James Wicklund, reiterated his Neutral rating on shares of Noble Corporation (NYSE: NE) and cut his price target to $3.50 from $4.00 despite the fact that the company has the strongest high-spec jackup and floater fleet which leaves the company best positioned to take advantage of its industry-leading contract coverage on the jackup fleet (75% vs 42% industry-wide).

However, he is unwilling to consider an upgrade at this time for three reasons:

1) the levered balance sheet (41% net debt to cap, ~14x net debt to NTM EBITDA)

2) high relative VPR

3) the Paragon litigation overhang, which remains an unknown liability

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 $3.06 yesterday.

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