Ezra Holdings’ (5DN.SG) $155.3 million cash call catches investors off guard as “they still have quite a lot of funds,” says analyst at Singapore brokerage, according to Dow Jones.
Supplier of offshore support vessels proposing 1-for-5 rights issue at $1.18 each, priced at 33.3% discount to last close, yielding $1.67 theoretical ex-rights price. Proceeds will be used to fund new business ventures, capex, vessel acquisitions.
OCBC Investment Research has raised Ezra Holdings (5DN.SG) target price to $2.88 from $2.54 after rolling forward valuation to 15x blended FY10-11 earnings. Keeps “buy” call, reported Dow Jones Newswires.
Says prospects for offshore support vessel supplier remain bright given strong demand amid more upstream energy projects coming to market. Adds Ezra has shown it is able to capitalise on distressed assets when opportunities arise.
CLSA is maintaining Ezra Holdings (5DN.SG) at buy, raising its target price to $2.54 from $2.10 after upgrading its FY10, FY11 earnings forecasts by 10%, 11%, respectively, to factor in higher margins and lower finance costs.
The brokerage says the offshore support services company is “poised to ride the growth in deepwater exploration and surging demand for attendant subsea services” as it will take delivery of three subsea vessels in 2010.
