Ezion

Ezion: Big wave of Buy Reiterations this morning on Ezion, notably, Kim Eng, JP Morgan, CIMB, UOB Kay Hian and CLSA, where all the houses are highlighting that the recent weakness offers investors a good entry point in a fundamentally sound company. Believe that most of the delayed rigs should be deployed in 3Q14, contract wins will remain strong (we expect 4 more contracts) and earnings momentum will pick up in 2H as new rigs will start contributing. Order backlog of US$2.6bn offers strong visibility over next three years. Selling pressure also appears to have eased, so it might be a good time to accumulate the shares should the momentum or buy reiterations continue.