Ezra - Ezra target cut to $2.22 by BoA-ML; Keeps Buy

Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED
Research House: BofA Merrill Lynch

Bank of America-Merrill Lynch cuts Ezra (5DN.SG) target price to $2.22 from $2.76 to factor in earnings dilution stemming from 1-for-5 rights issue priced at $1.18 each, but is keeping its Buy call, says Dow Jones.



“While equity investors, including us, do not like immediate EPS dilution, we see the recent equity issues by mid-cap offshore oil service providers as signs of increasing opportunities in the industry,” says BoA-ML.

Research house notes supplier of offshore support vessels had in past raised funds before announcing details on projects. Ezra will use $155.3 million proceeds to fund new business ventures, capex, vessel acquisitions. Shares off 5.1% at $1.68.