OCBC tips more upside for Ezion despite YTD rise

Despite Ezion Holdings' (5ME.SG) near 36% year-to-date rise, OCBC says shares still have upside.

The house attributes the stock's recent resilience in the face of the STI's 6.8% decline from its 52-week high in May to the fact that Ezion's earnings are backed by secured contracts for a fleet of 27 liftboats and service rigs, and its diverse customer base composed of national oil companies from various parts of the world.

"Despite the good stock price performance year to date, we still see an upside potential of about 14% over a one-year time frame," the house says.

It tips, contracts that the group secures in the future that will have an impact on FY13F and FY14F earnings may be further price catalysts. OCBC has a Buy rating and $2.62 fair value for the stock. The stock is currently flat at $2.29.