Dahlman Rose Upgrades Noble Corporation (NE) to Buy; Potential to Grow Earnings Through Higher Dayrates & Newbuilds

Dahlman Rose upgraded Noble Corporation (NYSE: NE) from Hold to Buy.

Dahlman analyst says, "Noble also stands to benefit from a stronger jackup market, largely because of its exposure to Pemex. The company has recently secured several long-term contracts in Mexico, and we expect it will win additional long-term contracts in the coming months. In fact, management noted on its last earnings call that it could take some of its idle capacity in West Africa into the region. Noble shares have not seemed to price in the improvement in the company's jackup operations, and we view 2011 as the trough year for its earnings. We forecast 2011 EPS at $2.20 share and 2012 EPS at $3.71 and believe Noble has the capacity to improve earnings to a run-rate of ~$5.00 annually, once it takes delivery of all of its newbuilding drillships in 2014. We expect earnings to improve in the coming quarters/years on the back of improving dayrates, coupled with fleet growth."

For more ratings news on Noble Corporation click here and for the rating history of Noble Corporation click here.

Shares of Noble Corporation closed at $39.45 yesterday.

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