Noble: Goldman Sachs downgrades to Neutral from Buy, with $1.60 TP. Believe the market has factored in a 4Q11 earnings rebound (absent one-off losses in 3Q11 from cotton defaults and carbon credit write-downs) and the appointment of Yusuf Alireza as its new CEO (which has improved investor confidence).
Note that Noble's 10-year bond yields have narrowed about 2.25 ppt from their peak to trade closer to levels before the 3Q11 results. Expects Noble's structural vol growth trend to continue, with 2010-13 three-yr vol CAGR of 13% on industry consolidation and the company's supply-chain investments. But adds that 2012's difficult trading conditions may pressure margins, citing possible pressure on soybean crush margins and weakening thermal coal prices.
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