UPDATE: Noble Downgraded by Morgan Stanley

In a report issued by Morgan Stanley Tuesday, analyst Ole Slorer downgrades

from Overweight to Equal-Weight with a price target of $42.50. Morgan Stanley defends the downgrade, "While NE doubled its dividend in early 2013, we still see more room for the return of capital to shareholders. We see lack of valuation differentiation based solely on fleet specification, and have long argued that a spinoff would lead to valuation uplift only through the adoption of a full payout dividend model." Slorer states that there are potential catalysts that could make for the bull case, including continued dividend growth, a full dividend payout model, and unloading lower spec units and similar operations. NE previously closed at $35.39 and is currently trading at $35.44