Why Ezion is a good buy despite FY16 earnings miss

SINGAPORE (Feb 24): CIMB Research is maintaining its “add” rating on Ezion Holdings with a raised target price of 45 cents from 44 cents previously, even as offshore service provider on Thursday reported a widening of new 4Q losses to US$66.6 million from US$63.5 million a year ago.

FY16 revenue of US$318.2 million was down 9.4% from US$351.1 million in FY15, as two of the group’s vessels were off-hire in 4Q16.