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Thursday, November 8, 2012

Ezion jumps after brokers raise target prices


Shares of Ezion Holdings jumped as much as 5.2% to a two-week high after several brokerages raised their target prices for the offshore services firm, following new contract wins secured by its joint venture.

By 9:27 a.m., Ezion shares were up 3.8% at $1.385, and have more than doubled since the start of the year.
OCBC Investment Research raised its target price for Ezion to $1.70 from $1.53 and kept its ’buy’ rating, after increasing its 2013 and 2014 earnings estimates by 13.4% and 9.8% respectively to account for contract wins.

Ezion’s joint venture with Kim Seng Holdings secured contracts worth up to $298 million to provide two service rigs over seven years.

“The constant flow of contracts illustrates the demand for Ezion’s expertise and assets, which we find very encouraging,” said OCBC in a report.

CIMB Research also raised its target price for Ezion to $1.68 from S$1.64 and kept its ’outperform’ rating. Both brokerages said Ezion’s third-quarter earnings were within expectations.

Ezion’s net profit in July-September rose 24.4% to US$16.1 million ($19.7 million) from a year earlier, helped by higher revenue from its chartering and logistic support vessels businesses.

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