Shares of offshore driller Noble Corporation regained ground Friday after Credit Suisse upgraded the stock and Friedman, Billings, Ramsey & Co. issued bullish comments, a day after the company said it may need to terminate operations in Nigeria.

Shares fell nearly 5 per cent Thursday after the company disclosed that it is operating under expired temporary import permits and hasn’t been able to obtain or renew permits for five rigs in Nigeria. As a result, Noble may need to end its Nigerian contracts.The company in June launched an investigation into its practices in Nigeria, as working under permits procured through agents may violate US regulations.

Credit Suisse analyst Arun Jayaram said in a note to clients Friday that the pullback in Noble’s shares as well as "emerging catalysts in the Middle East, Mexico, and deepwater markets" make the stock more attractive. He upgraded shares to "Outperform" from "Neutral." FBR analyst Robert MacKenzie said Noble’s announcement regarding Nigeria is a "non-issue," and believes the share decline was an "overreaction" as Noble is not alone in its situation. "It is highly unlikely that any U.S.-listed driller will continue the current practice of paying a customs agent," he wrote in a note to investors. "However, the current procedure in Nigeria requires the use of a customs agent, leading to an untenable position for many offshore rigs in Nigeria."

Jayaram agreed, noting the issue affects more than 15 companies. And the rigs in question represent less than 9 per cent of Noble’s revenue, he said. In addition, the company will likely benefit from "surging" rig demand in Saudi Arabia and Iran, as well as leverage within the deepwater-rig market, where it has "significantly more" presence than its peers, Jayaram wrote.