UPDATE: Stifel Nicolaus Initiates Hold on Noble Energy

Stifel Nicolaus initiates a Hold rating on Noble Energy (NYSE: NBL) and sees its fair valuation between $100 and $110 per share on strong and diversified production growth.

Stifel Nicolaus notes, " we believe that most of the international production growth for the coming two years is well expected and reflected in the stock, valuation is fair at current levels, the company is outspending cash flow for the coming two years, and the pricing/timing of monetizing its recent Mediterranean discoveries (Leviathan, Cyprus) could take longer than expected due to political/development issues. ... Noble's average production growth during the past two years was 3%. Production growth in the coming five years is expected to average 17%, primarily from lumpy offshore developments and more gradual onshore shale gas Upcoming production growth is well."

NBL closed at $98.73 per share on Tuesday.