CIMB cuts target on Ezion to $0.85

Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 0.85

CIMB has lowered its target price on Singapore oil and gas services firm Ezion Holdings (EZHL.SI) to $0.85 from $0.92, but maintained its outperform rating.

CIMB cited industry publication Upstream as saying that a consortium led by Aberdeen-based Asco Holdings will be building, owning and operating a marine supply base in Darwin, Australia. 

The increased competition to Ezion is a worry, CIMB said, adding that the Singapore company has been facing delays in developing marine bases in Australia due to changes in clients’ requirements and environmental regulatory hurdles.

However, the brokerage said it continues to see catalysts to Ezion from marine logistics work for Australian liquefied natural gas projects, on-schedule liftboat deliveries and more rig conversion.

At 10:14 A.M., Ezion shares were down 1.8% at $0.55. The stock has fallen more than 22% so far this year.