Ezra price target slashed 25% to $1.10 by CIMB

Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 1.10

SINGAPORE (Oct 27): CIMB has cut its price target on Ezra Holdings from $1.47 to $1.10, pegged at 0.7 times book value, citing weaker industry sentiment.

It has also trimmed its FY2015 and FY2016 earnings per share estimates by 1% to 3% after lowering its forecast for Ezra's subsea orders to US$1.2 billion from US$1.5 billion.

Still, Ezra's EPS estimates could be upgraded if its profit margins exceed expectations, according to CIMB analyst Lim Siew Khee, who has an "add" rating on the stock.