Nomura raises Noble Group’s (N21.SG) target price to $2.76 from $2.52 after upgrading its FY11 earnings estimate by 2.9% to US$727 million ($927 million) to mainly account for Cerradinho sugarcane mills acquisition and a higher coal environment.
“A positive macro environment and continuing supply disruptions (like Queensland coal) would help Noble’s short- and mid-term performance, in our view,” says Nomura. 
 
It notes Noble is trading at 15.3X FY11 P/E, which “is not expensive (in the) current bullish macro environment, and with volumes on the upswing, the continued earnings delivery should support valuations.” 
 
It keeps a Buy rating on the stock. The stock is down 0.4% at $2.28.