Tuesday, April 24, 2012
Ezion: DnB Nor reiterate positive view on Ezion with $1.10 TP, supported by quantitative and qualitative factors. Note that co has demonstrated over time that it can add shareholder value through value- and earnings-accretive contracts, without overstretching its balance sheet. With 10 liftboat and service rig contracts secured in the past 15 mths, focus will be on the performance of these contracts, from which house expect a strong earnings uplift from Q4 2012 (2013e EPS growth 75% YOY). Although Ezion is one of the best performing offshore stocks in Asia (+44% YTD), argue that investors have yet to fully price in earnings growth prospects and visibility, with an undemanding 2013e P/E of 6.1x and EV/EBITDA of 4.5x.