NE: Future Earnings Power And Index Inclusion Will Drive Upside

Analysts have modestly reduced their price target on Noble to reflect a slightly lower fair value of approximately 38 dollars. This adjustment is offset by expectations for stronger profit margins and a more attractive future earnings multiple.

What's in the News

• Noble narrowed its full year 2025 revenue guidance to a range of 3,225 to 3,275 million dollars, signaling slightly improved visibility on top line performance (company guidance filing).
• The company reported that, from July 1, 2025 to September 30, 2025, it repurchased no additional shares under the November 5, 2024 buyback, but has completed 1,048,262 shares in total for 29.82 million dollars, about 0.66 percent of shares outstanding (company disclosure).
• Over the same period, Noble also reported no incremental repurchases under the November 3, 2022 program, which is now completed at 10,885,851 shares, representing approximately 7.61 percent of its issued share capital (company disclosure).
• Noble Corporation plc, ticker NE, was added to the S&P 1000 index. This may broaden its investor base through passive index flows (index provider announcement).

Valuation Changes

• Fair Value: reduced modestly from 40 dollars to 38 dollars, reflecting a slightly lower intrinsic value estimate.
• Discount Rate: edged down slightly from approximately 7.80 percent to 7.75 percent, indicating a marginally lower perceived risk profile.
• Revenue Growth: lowered significantly from about 6.20 percent to roughly 2.83 percent, signaling more conservative top line expectations.
• Net Profit Margin: increased meaningfully from around 12.41 percent to approximately 17.99 percent, implying stronger anticipated profitability.
• Future P/E: compressed sharply from about 20.8x to roughly 11.6x, suggesting a more attractive earnings multiple on the revised outlook.