JPMorgan Upgrades Noble Corporation (NE) Stock to Overweight

On May 28, JP Morgan analyst Arun Jayaram upped Noble Corporation plc (NYSE:NE)’s stock from “Neutral” to an “Overweight” rating and set a price target of $30.00.

JPMorgan Upgrades Noble Corporation (NE) Stock to Overweight

A close-up of a drilling rig with its silhouette against a sunset sky.

The analyst highlighted a shift in preference towards offshore projects compared to North American markets. Despite the broader market volatility in deepwater and harsh environment jackup sectors, Noble Corporation plc (NYSE:NE)’s leadership demonstrated optimism regarding the addition of term work for several rigs, such as BlackRhino, Noble Viking, and Noble Valiant.

For 2025, Noble Corporation plc (NYSE:NE)’s revenue guidance is being aided by contracted backlog. The company has maintained its guidance ranges for total revenue of between $3,250 million – $3,450 million and adjusted EBITDA of $1,050 million – $1,150 million. Noble Corporation plc (NYSE:NE)’s management emphasized its commitment to maintain the dividend, thanks to its robust FCF generation, a healthy balance sheet, and improved backlog visibility.

The company’s marketed fleet of 25 floaters was 80% contracted during Q1 2025 as compared to 74% in the prior quarter. Furthermore, recent backlog additions since last quarter have added 15 rig years of total floater backlog. This enhanced contract coverage over the upcoming several years.

In Q1 2025, the company’s FCF came in at $173 million. Noble Corporation plc (NYSE:NE)’s balance sheet (as of March 31, 2025) had 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 for the broader oil and gas industry.

While we acknowledge the potential of NE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than NE and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.