Noble

Noble: Nomura maintains Buy with TP $2.50. Cite that weakness offers a good price point to BUY (on valuations and possible Agri value unlocking). YTD operating conditions remain challenging, with weak crush margins, carbon credits and logistics, and muted Agri contribution on a seasonally low harvest.

Add that although Noble remains on track to achieve US$1b of earnings by FY13/14F, there may still be downside risk of 6-8% to Street’s FY11F earnings. Cut estimates but continue to recommend BUY, as the long-term story remains intact, valuations look attractive, possible value unlocking in Agri, and limited downside from current level.