UPDATE: Bank of America Merrill Lynch Initiates Coverage on Noble Energy with Buy Rating, $135 PT

In a report published Monday, Bank of America Merrill Lynch initiated coverage on Noble Energy

with a Buy rating and $135.00 price target. BofA Merrill Lynch noted, “We initiate coverage of Noble ahead of what we believe is an inflexion point for growth; by our analysis earnings can double in 2 yrs while a deep project queue anchored on an unconventional resource footprint in the lower 48 provides line of sight to double the company in terms of production and cash flow by 2017. The result is a contraction in NBL's forward multiple below historical average levels and at a faster rate than any other stock in the sector, adjusted for risk. Our NAV suggests fair value is reasonably $160; however acknowledging this assumes a recovery in gas prices we set a realistic 12m PO that assumes gas remains flat.” Noble Energy closed on Friday at $103.24.