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Saturday, November 3, 2012

Noble 3Q12 profit may near record: CIMB


FRIDAY, 02 NOVEMBER 2012 13:48

Noble could post near-record profit in 3Q12, with sugar harvesting peaking in the quarter, CIMB says. “The turning point has come for global agribusiness giants with Bunge’s (BG) profits doubling and Cargill’s quadrupling.”
The US drought has created opportunities for supply-chain managers able to procure supplies amid crop scarcity and deliver grains where they are needed, with Noble in the sweet spot to benefit, it says, noting operating conditions have normalised and even oilseed-crush margins improved in the quarter.

CIMB forecasts Noble’s 3Q12 core net profit at US$154 million ($188 million), up 6% on-quarter and swinging from a year-earlier loss. “Noble is about to enter a fresh chapter of growth. New sugar assets in Brazil should bump up agriculture earnings.”

It raises its target to $1.61 from $1.46 after rolling valuations forward, with a High Conviction Outperform call. It tips strong 3Q12 results could be a re-rating catalyst. The stock is up 2.4% at $1.30.

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