Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED
RBS has lowered its 2011 net profit by 62% to reflect initial consolidation losses from acquiring Aker Marine Contractors.
Company Name: EZRA HOLDINGS LIMITED
| Research House: RBS | Price Call: BUY | Target Price: 2.00 |
RBS has lowered its target price for Singapore oil and gas services firm Ezra Holdings (EZRA.SI) to $2.00 from $2.20, but maintained its buy rating.
RBS said it expects Ezra’s subsea division to report losses till the fourth quarter due to the low utilisation of two of its vessels, but forecasts the losses to reverse starting from the first quarter of fiscal 2012 as it acquires more contracts.
RBS said it expects Ezra’s subsea division to report losses till the fourth quarter due to the low utilisation of two of its vessels, but forecasts the losses to reverse starting from the first quarter of fiscal 2012 as it acquires more contracts.
RBS has lowered its 2011 net profit by 62% to reflect initial consolidation losses from acquiring Aker Marine Contractors.
Ezra’s existing offshore divisions is expected to grow at a stable rate of 9-10% year-on-year in fiscal 2012 and 2013 as it adds more vessels to its fleet, the brokerage said in a statement.
RBS said it has kept its buy rating as Ezra’s shares are undervalued given its future earnings growth potential.
At 11:27 a.m., Ezra shares were down 1.57% at $1.25 and have lost about 30% so far this year.
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