Dahlman Rose: Frontier Acquisition Should Catalyze Move Higher In Noble Corp (NE)

Yesterday, Noble Corp. NE announced that they had acquired Frontier Drilling for $2.16 billion. According to analysts at Dahlman Rose & Co. "The all-cash transaction will expand Noble's (NE) reach within the deepwater segment and is expected to be immediately accretive to cash flows." Noble also announced that Royal Dutch Shell RDS has awarded the company two long-term contracts. According to Dahlman Rose, with Noble's growth profile enhanced and management taking a more aggressive stance, the shares should revalue. The analysts reiterated their Buy rating and $42 price target on the stock.