Noble: IIFL downgrade to Reduce and slashes TP to $2.04 from $2.80, citing the Glencore drag. Note that Noble’s share price has been dragged down by the very weak performance of Glencore’s since the latter’s IPO in May, while Noble is at earlier stage of growth, and has much more stable earnings, than the asset-heavy Glencore…..
Believe that the market is under-pricing Glencore as a pure miner. However, the inescapable comparison with Glencore now renders original valuation of Noble untenable. Tune down target P/E to 13x (and P/B to 2.2x).
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