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+44 (0)20 7232 3090 Traded on

AIM, London
Fax +44 (0)20 7232 3099 Stock Exchange Regulated and

LSE: IIR authorised by

Noble Corporation 11 July 2008

Update Report – 1Q 08 results

Rising level of E&P activity to support long term growth

NYSE BUY Fundamental research indicates 23% upside in the NYSE common stock over the next 6–12 months.
Direct access to
We have calculated thethe
based onfree of charge
fundamental factors,atusing a weighted average of target
prices obtained through the DCF and comparative valuation methodologies. We continue to take a 6–
12 month investment horizon for this stock as the market in which the company operates is highly
Stock cyclical and therefore trends can be captured more accurately within a shorter investment horizon.
Ticker: NE
Target price: US$72.80
Current price: US$59.22 We upgrade the NYSE common stock from a HOLD to a BUY with a 6-12 month target price of

European BUY The European stock is expected to increase by approximately 30% over the next 6-12 months as the
23% fundamental upside in the NYSE common stock is augmented by 6% upside, purely attributable
Stock1 to the anticipated appreciation of the US dollar against the euro and a reduction in the discount by 1%
Ticker: NE.F over the same period.2
Target price: €48.20 .
Current price: €37.02 We upgrade the European stock from a HOLD to a BUY with a 6-12 month target price of €48.20.

Supervisor: Nirav Shah

Analyst: Madhusudan Khatri Investment horizon - short term actionable trading strategies
Editor: Matthew Bridle
Global Research Director This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If
this report is provided to you by your broker under the Global Settlement, you may now also access (free of
Satish Betadpur, CFA charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming
5-30 days for readers with a shorter trading horizon. These are available on-line only at
Next news due:
2Q 08 results, 24 July 2008

Report summary
Noble Corporation (Noble) reported robust top- and bottom-line growth during 1Q 08 supported by
higher average dayrates for its units. Higher demand for offshore rigs in an environment of rising
hydrocarbon prices supported an increase in dayrates during the quarter. Going forward, we remain
optimistic of a sustained increase in demand for the company’s products given rising levels of E&P
spending by energy companies as we forecast oil prices to continue to increase. The company
operates its rigs in major international markets and already has a strong contract backlog. Moreover,
Noble plans to construct a number of rigs in line with its capital expenditure plans in order to meet an
anticipated increase in demand. Given our fundamental outlook and current prices levels, we remain
optimistic about future upside potential in Noble’s NYSE stock and believe it is an attractive
investment opportunity.

Currency impact on the European stock2

The impact by itself of the anticipated currency movements on the European stock (now €37.02)
without considering changes in the share price is broadly positive and is expected to be:

Over 6 months: €34.60

Over 12 months: €38.70

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