Citi Reiterates Buy on Noble (NE)

Citi is out with its report today on Noble (NYSE: NE), reiterating Buy.

In a note to clients, Citi writes, "We forecast a downward-trending EPS from $0.39 in 4Q10 to $0.30 in 1Q11 (consensus: $0.18), although we expect 1Q11 to represent a bottom from which favorable trends should ensue. We expect five to six deepwater permits per month to be issued in the GOM going forward and all of the company's jackups in Mexico to be contracted by the end of May. Although we continue to believe that the precise timing of a GOM deepwater recovery is uncertain, we consider prospects better than anticipated three months ago and well beyond the most pessimistic scenario many are still modeling. We reiterate our Buy (1H) rating and $54 price target on NE."

Shares of NE closed Wednesday at $43.35, up 0.28% from Tuesday's close.