Battered Noble Group May Be the 'Bargain of Decade'
- Rating cuts, accounting issues `priced in,' Tiruchelvam says
- Sales, profit forecast to rise as company boosts volumes
A giant excavator operates beyond agricultural land at the Garzweiler open cast lignite mine, operated by RWE AG, in Garzweiler, Germany, on Tuesday, Dec. 15, 2015. Global governments and companies are counting the costs and benefits from the United Nations COP21 climate agreement, which calls for wholesale transformations of energy, transportation, and dozens of other lines of business.
Photographer: Martin Leissl/BloombergThe worst performing stock on Singapore’s Straits Times Index is actually the bargain of the decade, according to Religare Capital Markets, which started coverage of commodity trader Noble Group Ltd. with a buy call backed by forecasts for rising profit and sales. The shares rallied.
“The stock is at a quarter of its average valuation in the last decade,” analyst Nirgunan Tiruchelvam wrote in a report, with a target of 37 Singapore cents, compared with Thursday’s close of 27 cents. The Hong Kong-based company is “the bargain of the decade,” according to a headline in the note.