Noble

Noble: UOBK says Noble's share price is likely to range btwn $1.10-1.30 over the next two months "until further clarity emerges" and recommends an entry price of $1.10. Says Noble's medium-term outlook is positive if Brazilian sugar mills achieve operating leverage, and oil gas gains traction however near-term, it says "price weakness in several commodities, namely coal, coffee, cocoa, aluminium and iron ore, as well as negative China soybean crush margins, will put a lid on Noble's stock price."
After meeting with co representatives, the house notes 9M11 cotton losses were small vs other players' "and were reasonable in light of the difficult and volatile price environment" while the impact of carbon credit losses "was magnified given that other businesses did not provide sufficient cushion (in 3Q). Excluding these transitory factors, the group would have turned in a respectable profit." Adds, Noble's focus is creating value over 3-5 years, not quarterly earnings. UOBK has a Hold call, TP $1.20; shares +0.4% at $1.22.