Noble Group cut to Underperform by CIMB

Written by The Edge


Friday, 13 August 2010 11:43

CIMB downgrades Noble Group (N21.SG) to Underperform from Outperform, reduces target price to $1.27 from $2.20 after revising down FY10-12 core EPS estimates by 31-39% to reflect lower margins, higher costs, says Dow Jones.

Noble yesterday reports 2Q net profit down 65% at US$85.9 million ($117 million), gross margin at 2.4% vs 3.7% year earlier despite sharply higher revenue, as increased expenses weighed. Broker says “company faces challenging business environment and higher costs.”

Stock down 1.3% at $1.57.