Market Overview

Noble Cut To Sell By Argus, Balance Sheet Said To Have Deteriorated

Share:

Argus downgraded Noble Corporation Ordinary Shares (UK) (NYSE: NE) to Sell from Hold on declining offshore drilling activity and balance sheet concerns.

Analyst David Coleman noted that Noble continues to be pressured by a drop in offshore drilling activity, and has been hurt by lower fleet utilization and day rates.

Further, Noble will now face higher borrowing costs following credit downgrades from S&P and Moody's. In late April, Noble slashed its quarterly dividend to $0.02 from $0.15 to conserve cash.

"Based on these factors and the absence of positive catalysts, we believe that a SELL rating is now appropriate," Coleman wrote in a note.

The analyst cut his 2016 EPS estimate to $0.20 from $0.61, reflecting continued energy sector weakness and the downturn in drilling activity. The analyst also widened his 2017 loss estimate to $0.47 per share from $0.42 per share. The 2016 consensus EPS estimate is $0.04 and the 2017 consensus loss forecast stands at $1.02 per share.

Noble shares have underperformed over the past three months, falling 26.3 percent compared to a gain of 6 percent for the S&P 500. Over the past year, they fell 38.5 percent, compared to a gain of 5 percent for the index.

At time of writing, shares of Noble fell 2.43 percent to $7.02.

Latest Ratings for NE

DateFirmActionFromTo
Jun 2019ReinstatesUnderperform
Mar 2019Initiates Coverage OnNeutral
Jan 2019UpgradesHoldBuy

View More Analyst Ratings for NE
View the Latest Analyst Ratings

Posted-In: Argus David ColemanAnalyst Color Downgrades Price Target Analyst Ratings

 

Related Articles (NE)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
IINDoughertyAssumes34.0
PNRJefferiesInitiates Coverage On
YYUBSUpgrades
ROKUOppenheimerMaintains155.0
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Clock Is Ticking On Incipio's Offer To Skullcandy, Board Advises Shareholders To Take It

Yum Brands And The China Chicken Contraction