"In their business, it is conceivable that there's a lot of fluctuation in their profits and in their cash flow positions and that's something investors need to account for. And in this case, it is conceivable that they would recover from the losses that they've just faced," Nirgunan Tiruchelvam, director at Religare Capital Markets, said on CNBC's "The Rundown."
Religare does not offer recommendations on stocks but Tiruchelvam added that the numbers currently suggest Noble's stock price is at a deep discount to its book value. In addition, the company had shown in the past that they have the ability to raise cash to meet their obligations.
Tiruchelvam's optimism contrasted with several analysts. Moody's on Monday downgraded ratings of Noble bonds, saying there is heightened concern over the company's liquidity and large debt maturities over the next 12 months. CreditSights was also negative, noting management's suggestion that the company may not be profitable this year.
There have been signs of bargain hunting in Noble, with shares up 3.4 percent in early Tuesday trade. The company's shares plunged 54 percent between May 9 and May 15 after it reported a surprise quarterly loss of $129.3 million for the January-March.