Ezion: Ezion’s shares are currently trading below the psychological $1.00 level, with renewed selling pressure taking its stock loss over the last one month to –23% vs. STI’s –1% drop.
Given the lack of any negative company-specific news in relation to this sell-off, Daiwa views this as an opportune time for long-term investors to invest in a fundamentally strong company.
In addition, the CEO purchased 200k shares on 19 Mar 2015 at an average cost of $0.96/share.
Ezion’s net gearing currently stands at 0.9x and house expects this ratio to improve to 0.38x by end-2017 as the company pares back on new business (less capex requirement) with a renewed focus on capital conservation.
House reduced its TP to $1.49 (from $1.71), but maintains its Buy rating.
No comments:
Post a Comment