CIMB up Ezion price target on order wins

Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 1.11

CIMB Research edged up its price target for offshore marine firm Ezion Holdings to $1.11 from $1.09 and kept its outperform rating, as it expects the company to win more orders.

Ezion’s shares rose 2.6% to $1.00, and have surged 52% so far this year.

“Growing traction among oil companies, strong demand for its niche offerings and high oil prices are behind Ezion’s unrelenting order momentum,” CIMB said in a report.

It said Ezion had secured US$437.5 million worth of orders so far this year, including its latest US$80 million contract win announced on Wednesday.

CIMB increased its 2013-2014 earnings per share estimate for Ezion by 5%, and expects Ezion to receive more marine logistics contracts for Australian LNG projects.