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STOCKS NEWS SINGAPORE-DBS reinstates coverage of Ezra with 'buy'

Source : REUTERS
Last Updated: Wed, Dec 05, 2012 03:00 hrs

DBS Vickers reinstated coverage of Ezra Holdings Ltd with a 'buy' rating and target price of S$1.30, saying it sees a gradual earnings recovery which could lead to a narrowing discount to book value and drive share price upside.

Shares of the oil services provider were up 1.9 percent at S$1.07 on Wednesday. So far this year, the stock has increased 27 percent, in line with the 28 percent gain in the FT ST Mid Cap Index.

DBS said it expects catalysts from strong subsea order momentum and improving demand-supply dynamics in the offshore support vessel charter markets, which support firmer day rates since 2011.

Ezra's offshore support division is expected to post improved profitability and balance sheet concerns are easing with the recent refinancing of convertible bonds, DBS added.

1042 (0242 GMT)

(Reporting by Eveline Danubrata in Singapore; Editing by G.Ram Mohan; eveline.danubrata@thomsonreuters.com)

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10:14 STOCKS NEWS SINGAPORE-Maybank starts Swiber with 'buy', target S$0.82

Maybank Kim Eng initiated its coverage of offshore services firm Swiber Holdings Ltd with a 'buy' rating and S$0.82 target price, citing the stock's low valuations and limited downside.

Swiber shares were up 4.2 percent at S$0.62 on Wednesday. The shares have risen 16 percent so far this year versus the 23 percent gain in the FT ST Small Cap Index.

Maybank expects Swiber's earnings per share to grow at a compound annual growth rate of 18 percent over 2012-2014 fiscal years, supported by the recognition of its $1.4 billion offshore construction order book and contract win momentum.

Swiber's fleet size increased from 10 vessels in 2006 to more than 50 currently, allowing it to handle more sophisticated jobs, depend less on third-party vessels and have greater flexibilities in fleet deployment, Maybank said.

The broker added that Swiber stock is a relative "laggard", trading at a price-earnings ratio of 5.8 times for 2013 fiscal year and a price-to-book of 0.6 times. But it noted there might be an overhang from high gearing and cash needs.

1005 (0205 GMT)




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