Noble

Noble: Macquarie notes that in the span of one month, Noble Group has rallied almost 15%, reaching a new 16-month high in the process. Macquarie believes this rally has been a result of a strong 1Q14 which allayed concerns around Noble’s earnings story for 2014. MER believes that the market can now focus more on the transformational Agri division stake sale. As we approach closing at the end of 3Q14 / start of 4Q14, MER believes investors are increasingly discounting potential cash usage scenarios from the sale. Thus, MER is doing the same, and had upgraded their 12-month price target on the stock to $1.65 from $1.50. Noble remains MER’s top pick in the Singapore-listed commodities space