Market Overview

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

Related NBL
Noble Midstream to Acquire Interest from Noble Energy (NBL)
Encana Inks $735M Deal to Offload Piceance Basin Assets

In a report published Monday, Bank of America Merrill Lynch initiated coverage on Noble Energy (NYSE: NBL) 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.

Latest Ratings for NBL

Jul 2017CitigroupMaintainsBuy
Jun 2017Seaport GlobalDowngradesNeutralSell
May 2017Bank of AmericaUpgradesNeutralBuy

View More Analyst Ratings for NBL
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill LynchAnalyst Color Initiation Analyst Ratings


Related Articles (NBL)

View Comments and Join the Discussion!