JPMorgan Upgrades Noble Corporation (NE) Stock to Overweight

On May 28, JP Morgan analyst Arun Jayaram upgraded Noble Corporation plc (NYSE:NE) from a “Neutral” to an “Overweight” rating, with a price target of $30.00. This decision was based on a shift in preference towards offshore projects compared to North American markets. Despite market volatility in deepwater and harsh environment jackup sectors, Noble Corporation plc (NYSE:NE) has shown optimism with term work additions for rigs like BlackRhino, Noble Viking, and Noble Valiant.

Looking ahead to 2025, Noble Corporation plc (NYSE:NE) is guided by contracted backlog, maintaining revenue projections between $3,250 million – $3,450 million and adjusted EBITDA of $1,050 million – $1,150 million. The company’s management is committed to sustaining dividends due to strong free cash flow generation, a healthy balance sheet, and improved backlog visibility.

During Q1 2025, Noble Corporation plc (NYSE:NE) had 80% of its marketed fleet of 25 floaters contracted, up from 74% in the previous quarter. Recent backlog additions have added 15 rig years of total floater backlog, enhancing contract coverage for the years to come.

In terms of financials, the company reported a free cash flow of $173 million in Q1 2025. As of March 31, 2025, Noble Corporation plc (NYSE:NE) had a total debt principal value of $1.98 billion and cash and cash equivalents of $304 million.

Noble Corporation plc (NYSE:NE) operates as an offshore drilling contractor serving the oil and gas industry. While the potential for growth in NE is acknowledged, some AI stocks are seen as having greater promise for higher returns with limited downside risk. For those interested in exploring AI stocks with significant upside potential, a report on the cheapest AI stock can provide valuable insights.

For more investment opportunities, consider checking out “13 Cheap AI Stocks to Buy According to Analysts” and “11 Unstoppable Growth Stocks to Invest in Now.” Disclosure: None.