STOCKS NEWS SINGAPORE-Ezion jumps after brokers raise target prices

Wed Nov 7, 2012 1:38am GMT

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Shares of Ezion Holdings Ltd jumped as much as 5.2 percent 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 0127 GMT, Ezion shares were up 3.8 percent at S$1.385, and have more than doubled since the start of the year.

OCBC Investment Research raised its target price for Ezion to S$1.70 from S$1.53 and kept its 'buy' rating, after increasing its 2013 and 2014 earnings estimates by 13.4 percent and 9.8 percent respectively to account for contract wins.

Ezion's joint venture with Kim Seng Holdings Pte Ltd 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 S$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 percent to $16.1 million from a year earlier, helped by higher revenue from its chartering and logistic support vessels businesses.

0928 (0128 GMT)

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