UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Removes PT on Noble Corporation Following 1Q14 Earnings

In a report published Thursday, Morgan Stanley analyst Ole Slorer reiterated an Equal-Weight rating on Noble Corporation NE, but removed the $36.00 price target. In the report, Morgan Stanley noted, “NE's improving grip on Opex is evident (Ex.3), with its latest beat largely attributable to significantly reduced mobilization and repair/maintenance cost. On the restructuring front, NE continues to target the divestiture of Paragon Offshore by year-end. While we still see meaningful upside from the separation of standard assets coupled with a full dividend payout, we now believe that an adverse market outlook for lower-spec assets could serve as an unforeseen hurdle, particularly in NE's currently chosen IPO route.” Noble Corporation closed on Wednesday at $30.37.