Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED
DBS Vickers Securities in a June 6 research report says: "We note that 3 major subsea EPIC peers have posted robust 1Q2011 new orders, +89% y-o-y on aggregate, and see strong order momentum in the quarters ahead.
"This bodes well for Ezra as it positions itself to add to its current subsea backlog of US$276 million, with Aker Marine Contractors' (AMC) integration on track, vessel fleet expansion and continued solid project execution. Ezra has announced new charters for 12 vessels worth US$189 million in FY2011 YTD.
"The group plans to rationalize the business over the next 12 months, potentially divesting its non-core units to free up its balance sheet. This could raise c. US$150-200 million cash for the group and reduce FY2012 net gearing to 0.84-0.89x, without the need for new equity. No change to forecasts. Target price of $2.20 implies 45% upside. MAINTAIN BUY."
Company Name: EZRA HOLDINGS LIMITED
| Research House: DBS Vickers | Price Call: BUY | Target Price: 2.20 |
DBS Vickers Securities in a June 6 research report says: "We note that 3 major subsea EPIC peers have posted robust 1Q2011 new orders, +89% y-o-y on aggregate, and see strong order momentum in the quarters ahead.
"This bodes well for Ezra as it positions itself to add to its current subsea backlog of US$276 million, with Aker Marine Contractors' (AMC) integration on track, vessel fleet expansion and continued solid project execution. Ezra has announced new charters for 12 vessels worth US$189 million in FY2011 YTD.
"The group plans to rationalize the business over the next 12 months, potentially divesting its non-core units to free up its balance sheet. This could raise c. US$150-200 million cash for the group and reduce FY2012 net gearing to 0.84-0.89x, without the need for new equity. No change to forecasts. Target price of $2.20 implies 45% upside. MAINTAIN BUY."
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