Ezra

Ezra: OCBC downgrade to Sell with $0.99 TP. House note that the share price of Ezra Holdings has seen an astounding increase of about 40% in the past week. Though Ezra has clarified earlier that it was not aware nor has it been engaged on a takeover by Samsung Heavy Industries, there could possibly be other offers by potential acquirers along the way. Still, there has been no change to the company’s fundamentals since its disappointing 3QFY13 results. Looking ahead, believe that execution risks are still not over for Ezra, despite an order book of more than US$2b, as this is susceptible to project delays and cost overruns. Without any official offer or significant contract wins, the recent price gain appears overdone. Based on fundamentals, house retaining fair value estimates.