Seize the day with a beaten-down stock in the midst of sector recovery

SINGAPORE (Jan 16): OCBC Investment Research has upgraded its call on Ezion Holdings from “hold” to “buy” with a fair value estimate of 54 cents.

Although it continues to expect a challenging operating environment for energy equipment and services (E&P) investment companies, the research house is suggesting that longer-term investors “look beyond this” and instead, choose “pick up beaten-down stocks whose negatives have been mostly priced in” such as Ezion.   

“As Ezion is modifying a few more of its existing service rigs and taking delivery of two or three new units by the end of 2017, managing its cashflow and gearing is imperative,” note analysts Low Pei Han and Eugene Chua in a report last Friday.

---

Related Stories

• FairPrice Group to trial autonomous vehicles on public roads for cargo transportation
• US utilities face ‘significant’ challenge as power demand surges for first time since 1990s: Wood Mackenzie
• Asia port snarls spread with ship delays looking to last into August

---