Company Name: EZRA HOLDINGS LIMITED
| Research House: StanChart | Price Call: HOLD | Target Price: 1.20 |
Standard Chartered downgrades Ezra Holdings to In-Line from Outperform based on valuations, saying it now looks fairly valued. “The stock now trades at a similar multiple to the sector, while EV/EBITDA is at a premium to peers.”
StanChart lowers its target price to $1.20 from $1.45, still based on 12x 2013 PER, after lowering 2013-14 EPS forecasts by 10%-24% to factor in dilution from the Triyards IPO, financing expense from its perpetual securities and lower margin assumptions for the subsea business.
“We continue to like Ezra’s subsea business, which, we believe, has significant earnings potential over the medium to longer term. The subsea services market is on an upturn and will benefit from the rising development of deepwater fields.”
But it views catalysts as some time away, expecting Ezra’s next major subsea milestones will be in 2014 with the Lewek Constellation delivery and the EPIC business model introduction, which will target large-scale projects.
The stock is down 0.4% at $1.23.
No comments:
Post a Comment