Noble

Noble: DBSV upgrades Noble to Buy from Hold. It says 1Q12 core profit of US$136m, +88% qoq, topped its expectation for US$100m-US$120m as the metals segment's vol were higher than anticipated; consensus had forecast US$138m. Add that house had previously been concerned about the group's ability to source iron ore given restricted supplies from India, but as vol were up 13% year-on-year in 1Q12, our fears have been alleviated. House raises TP to $1.40 from $1.30 after increasing FY12-14 earnings forecasts by 3%-4% on a higher minerals segment contribution. See 1Q12 as an inflection point for Noble following its solid performance this quarter. As such, recommend investors to Buy ahead of the sequential rise in profits as Noble benefits from the upcoming agricultural harvest and expansion of its coal and U.S. energy businesses.