Evercore ISI Increases Noble Corporation Price Target Amid Strong Deepwater Demand

Price Target Increase#

Evercore ISI has raised its price target for Noble Corporation (NYSE:NE) from $45 to $59, while maintaining an In Line rating on the stock. Currently, Noble shares are trading at $53.44, reflecting a significant increase of 151% over the past year and 77% year-to-date. However, some analysts suggest that the stock may be overvalued at its current price.

Strong Outlook for Deepwater Drilling#

The firm highlighted a favorable outlook for 2026 and a promising setup for 2027, driven by strong demand in deepwater drilling. Noble Corporation reported a strong performance in the first quarter of 2026, exceeding expectations in revenue, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and free cash flow, despite a challenging market environment. The company's EBITDA reached $994 million over the past year, which supports the analyst's valuation framework of an 8.5 times multiple.

Increased Demand Indicators#

Management at Noble expressed confidence in a significant increase in demand for 2027. Notably, the company secured 32 ultra-deepwater rig years in the first quarter, nearly double the average from 2025. Additionally, over 40 more ultra-deepwater rig years were contracted in April, and the demand for open floaters has risen to over 110 rig years, up from around 100 in the previous quarter.

Stable Backlog and Financial Performance#

Noble's recent contracting activity has helped maintain a stable backlog of $7.5 billion, extending coverage into 2027. Since January, the company has reported $565 million in new contract awards, including extensions for several rigs. Noble has reiterated its guidance for 2026 revenue and EBITDA while increasing its capital expenditure budget by $25 million to support the reactivation of the Deliverer rig. The new price target reflects an 8.5 times multiple on the estimated EBITDA for 2027.

In other news, Noble Corporation's first-quarter 2026 earnings surpassed analysts' expectations, achieving an adjusted earnings per share (EPS) of $0.26 compared to the forecast of $0.2533. The company also reported revenue of $785.69 million, exceeding the anticipated $733.27 million, marking a strong financial performance that has garnered attention from investors.