Ezra

Ezra: Deutsche upgrading the counter to Hold, from Sell with a $1.00 TP. Note that Ezra’s share price has declined by more than 30% over the past two months. This came following clarity that its earlier share price run-up was not due to M&A possibilities but a potential listing in the US. Following its share price pull-back, Ezra is trading at 13.4x FY14E P/E (close to its historical average of 14.1x) and the house feel valuations are fair. If Ezra succeeds in listing its subsea business EMAS AMC, it should increase the group’s international profile and allow the business to raise capital on its own. But the process may take several months for a listing perhaps, at least towards end-2014/early-2015, and the volatile markets could have an influence on what listing valuations the group may eventually achieve.