SINGAPORE (XFN-ASIA) - Merrill Lynch said it has initiated coverage of Hong Kong-based supply chain manager Noble Group with a ""buy"" rating and target price of 1.93 sgd per share.
The current share price weakness of Noble, which was triggered by Tiger Rock's placement of its 9.4 pct stake in the company, presents a good buying opportunity, it said.
""We believe this weakness presents a good buying opportunity as the underlying fundamentals and long-term growth potential of Noble remain very strong,"" Merrill Lynch said in a note to clients.
The brokerage said it expects Noble's earnings to grow by 20 pct on a compounded annual growth rate (CAGR) basis over the next three years.
""Noble is transitioning from an asset-light commodities trader to an asset-medium integrated supply chain manager of niche commodity sectors. In our view, this refined strategy has strengthened Noble's competitive position and positioned it for its next phase of growth,"" it added.
At 4.15 pm, Noble was up 0.05 sgd or 3.21 pct at 1.61 with 10.15 mln shares traded
The current share price weakness of Noble, which was triggered by Tiger Rock's placement of its 9.4 pct stake in the company, presents a good buying opportunity, it said.
""We believe this weakness presents a good buying opportunity as the underlying fundamentals and long-term growth potential of Noble remain very strong,"" Merrill Lynch said in a note to clients.
The brokerage said it expects Noble's earnings to grow by 20 pct on a compounded annual growth rate (CAGR) basis over the next three years.
""Noble is transitioning from an asset-light commodities trader to an asset-medium integrated supply chain manager of niche commodity sectors. In our view, this refined strategy has strengthened Noble's competitive position and positioned it for its next phase of growth,"" it added.
At 4.15 pm, Noble was up 0.05 sgd or 3.21 pct at 1.61 with 10.15 mln shares traded
