Citi analyst Scott Gruber lowered the firm’s price target on Noble Corp. (NE) to $40 from $45 and keeps a Buy rating on the shares. The firm believes deep water spending should be up modestly next year even with the floating rig count likely down low to mid-single digits. Either crude prices need to rise to $80 per barrel for the industry to absorb the higher subsea equipment costs and increase volumes, or costs need to deflate to allow volumes to rise, the analyst tells investors in a research note. Citi believes it is more likely that drilling volume upside is limited, especially if crude moderates, and updated its offshore driller models.
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Read More on NE:
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- Noble Corporation’s Q3 2024 Results and Strategic Moves
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- Noble Corporation Reports Strong Q3 2024 Financial Results
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
