Ezra - Ezra cut to Hold by Deutsche Bank, lowers target

Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED
Research House: Deutsche Bank

Deutsche Bank downgrades Ezra (5DN.SG) to Hold from Buy, cuts target price to $1.90 from $2.80 after lowering FY11-12 earnings estimates by 35%-24% to account for vessel delays, integration of Aker Marine Contractors, which it recently proposed to buy for US$250 million ($326 million).



Says delay in delivery of several vessels will affect profitability of offshore oil & gas support company.

Adds, while Aker Marine will enhance Ezra’s sub-sea capability, company “may have its hands full trying to turn AMC profitable”.



Says 2H11 may be better time to revisit stock to get better clarity.



Shares off 2.9% at $1.69.



{jcomments on}