Written by The Edge
Friday, 13 August 2010 11:46
Noble Group (N21.SG) off 1.3% at $1.57 as supply chain manager’s weaker 2Q10 margins raise concerns earnings in coming quarters may continue to disappoint. 2Q10 net profit down 65% on-year at US$85.9 million ($117 million) on lower margins due to increased start-up costs for several businesses, plus absence of one-off gain, says Dow Jones.
“Near-term downgrades and weak 2Q may provide a good entry point, in our view,” says Nomura, which has Buy call with $2.10 target; “we still consider Noble a long-term fundamental re-rating story. New investments, albeit slow, should deliver with optimum utilisation in due course.”
Immediate support at year-to-date low of $1.54.
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