Noble Energy (NBL): Worth Spending Time On - Nomura

Nomura analyst, Lloyd Byrne, thinks Noble Energy (NYSE: NBL) is worth spending time on. It has strong management, tier 1 / big company assets, and attractive valuation. While many energy specific investors are supportive, most generalists are reticent in the face of Israeli regulatory uncertainty.

This past Wednesday Israel’s Energy Minister Yuval Steinitz announced a new “stability” deal with respect to changes in the country’s taxes, export quotas and regulations for hydrocarbon development. On Sunday, Israel’s cabinet voted to approve the revised proposal.

In March, the timing of the Leviathan project was potentially disrupted when Israel’s Supreme Court blocked a 10-year proposal for stability that was on the table. The Supreme Court gave the government one-year to revise its plan.

Once/if the hydrocarbon framework is agreed upon, coupled with progress on the commercial, technical and financing fronts, NBL can move towards sanctioning of Leviathan. NBL has been targeting 4Q16 / 1Q17 for sanction, with start up ~3 years after.

The firm maintained a Buy rating and raised its price target to $41 from $36.

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

Shares of Noble Energy closed at $35.62 yesterday.

You May Also Be Interested In

• Viking Holdings (VIK) PT Raised to $82 at Mizuho
• Beike (BEKE) PT Raised to $23 at Morgan Stanley
• Walmart (WMT) PT Lowered to $125 at JPMorgan, Overweight Rating Maintained as 'Short Case Feels Greedy'