Ezion

Ezion: While macro environment has certainly deteriorated over past six months, fundamental supply-demand as well as competitive dynamics in the core liftboat market remains healthy. Further, CLSA reckons earnings visibility remains very high with a US$2.2b backlog and only 4 of the 38 contracts up for renewal in 2015, even after accounting for project delays, lower utilisation/dayrates for 2016 and lower new asset acquisitions. FY14-16 earnings growth is still forecasted at an annualised 27%. CLSA remains Buyers albeit a lower TP of $2.11.