Ezion: DBSV reiterates its conviction Buy on Ezion and believes stock price could soon recover to the $1.20 level, prior to the emergence of the dispute with rig-operator partner Atlantic Marine Services.
Fundamentally, Ezion is well-positioned to benefit from the rising liftboat demand in the North Sea, buoyed by the substitution effect to replace typical work boats/barges.
The group also has a prudent business model, with fleet expansion backed by long-term charters of 3-5 years. Demand is also relatively more resilient as service rigs are exposed to the production phase in the shallow water segment.
House TP at $1.50, representing a 37% upside from the last price.
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