Noble (Buy, TP: USD46.00) - Increased risk of idle time
While investors should be well aware of the risk of downtime for Noble’s tier-2 rigs, we are now more concerned about idle time for some of its 7G drillships. We are now 11–16% below consensus after cutting our 2025–2026e EBITDA estimates. Nonetheless, among the large-cap contractors, Noble has the highest 2025–2026e dividend yield potential, at a modest 7–8%, while we now see more meaningful cash flow in the outer years. We reiterate our BUY, but have trimmed our target price to USD46 (48).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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