Company Name: EZRA HOLDINGS LIMITED
| Research House: Barclays | Price Call: BUY | Target Price: 1.65 |
Value has emerged in Ezra’s shares after recent weakness, Barclays says, noting the decline came despite the company’s recent announcements of contract wins.
“The fundamentals for the company continue to remain strong with its recent order momentum and improvement in profitability. With the shares currently trading below regional and global peers, we see this as a good opportunity for investors to gain leverage to a company we expect to deliver improving profitability and strong earnings growth in the medium term.”
It notes Ezra trades at 8.1x 2013 P/E, a discount to regional and international peers’ 10x and 12x respectively. Barclays expects Ezra’s 2012-15 EPS CAGR at around 40%; “this strong earnings growth outlook is not yet reflected in the shares.”
It expects new order momentum to continue into 2013 after the four subsea-segment contracts the company won over the past two months, as the industry continues to see a high volume of subsea tenders. It rates the stock at Overweight with $1.65 target. The stock is up 1.0% at $1.01.
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