Noble Corp PLC (NE) shares plummeted 5.13% during intraday trading on Tuesday, marking a significant downward movement for the offshore drilling contractor.

The sharp decline comes despite JP Morgan raising its price target on the stock, as investors focused on the company's softer revenue guidance for 2026 and valuation concerns. Analysis indicates Noble's stock may be overvalued by approximately 36.4% based on fair value estimates, with a P/E ratio of 33.7x significantly exceeding both the industry average and its fair ratio. Additionally, the company faces headwinds from weaker offshore demand projections for 2026 and increasing competitive pressures that could impact dayrates and margins.