Noble Corp. price target lowered to $40 from $45 at Citi

Citi analyst Scott Gruber lowered the firm’s price target on Noble Corp. (NE) to $40 from $45 and keeps a Buy rating on the shares. The firm believes deep water spending should be up modestly next year even with the floating rig count likely down low to mid-single digits. Either crude prices need to rise to $80 per barrel for the industry to absorb the higher subsea equipment costs and increase volumes, or costs need to deflate to allow volumes to rise, the analyst tells investors in a research note. Citi believes it is more likely that drilling volume upside is limited, especially if crude moderates, and updated its offshore driller models.