Ezra

Ezra: DBSV reinstates coverage on Ezra with a Buy and TP of $1.30. Expects catalysts from strong subsea order momentum, and sees improving demand -supply dynamics in the OSV charter markets, supporting the firming of OSV day rates since 2011. Expects the offshore support division to post improved profitability. Notes balance sheet concerns are easing, with recent refinancing of convertible bonds. Sees multiple drivers are in place to underpin gradual earnings recovery; believes this should lead to a narrowing discount to book value, driving upside from current price levels. The stock is +1% at $1.06.