Ezra cut to "reduce", target slashed 54% to 38 cents by CIMB

Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED

Research House: CIMB

Price Call: SELL

Target Price: 0.38

SINGAPORE (April 9): CIMB has downgraded Ezra Holdings to "reduce" from "add" and slashed its price target to 38 cents from 83 cents after the company reported substantially lower earnings for the quarter ended Feb 28.

Earnings fell to US$138,000 ($186,488) from US$19.6 million a year earlier, hurt by lower contributions from associates, losses from joint ventures and higher administrative and finance expenses.

"Both subsea and offshore support are facing headwinds of rate cuts and margin pressure," CIMB analyst Lim Siew Khee wrote in a note.