CIMB Research raised its target price on Ezion Holdings, an offshore services firm, to $1.65 from $1.19 and kept its ’outperform’ rating, citing strong contract wins.
At 11:39 a.m., Ezion shares were up 3.1% at $1.33 in a broader market that was down 0.7%. Its shares have more than doubled since the start of the year, compared with the FTSE ST Oil & Gas Index’s 29.5% rise.
Ezion said on Tuesday it secured a charter contract worth about US$201 million ($247 million) and a letter of intent valued up to US$82.1 million to provide two service rigs to a national oil company based in Southeast Asia.
CIMB said Ezion has secured 12 contracts worth over $1 billion in 10 months, underscoring its growing traction with Southeast Asian national oil companies.
The brokerage also likes Ezion for its growing track record and its management’s networking in Australia and Denmark, and resourcefulness in securing funding.
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