Ezra

Ezra: ‘Speculation on dual listing in London’. According to press reports, Ezra’s Managing Director Lionel Lee was quoted as saying that London is an attractive place to do a dual listing but no decision has been made given current market conditions.

DMG do not rule out a possible dual listing but believe such a move is premature at this stage given that its subsea earnings have yet to show the desired results, as a move to do a 2nd primary listing on depressed earnings may not be viewed positively.

On a more positive event, the recent takeover of Global Industries by Technip has set a pricing benchmark for the sector: the deal is valued at 20x FY12F P/E and 1.33x FY11F P/B on consensus estimates. At similar valuations, house estimate that Ezra will be valued at $1.70-2.50/share. DMG maintains BUY with an unchanged TP of $1.44 on 12x FD FY12F EPS.