Noble

Noble: CIMB has a high conviction note, reiterates Outperform, raises TP to $1.61 from $1.46. Says with sugar harvesting peaking in 3Q, Noble could be on its way to near record profits in 3Q12. This is supported by the agribusinesses having recovered from a bout of dismal earnings and industry profits having rebounded. Notes the US drought has created opportunities for supply chain mgrs which are able to procure supplies amid crop scarcity and deliver grains where they are needed. Also operating conditions have normalized – even oilseed crush margins have improved during the quarter. The house says Noble is about to enter a fresh phase of growth, propelled by improving industry dynamics and new assets. Sees more room for rating, given the stock trades at 0.7 std dev below its 5 yr mean. Tips strong 3Q12 results as a near term rerating catalyst. The stock is +2.8% at $1.30.