Brokers' take

Ezion Holdings >Buy OCBC Investment Research, Jan 13 Jan 13 close: S$0.42 Target price: S$0.54

ACCORDING to Wood Mackenzie, global capital spending by exploration and production (E&P) companies will total US$450 billion in 2017, up 3 per cent compared to 2016 after two years of steep declines. Still, E&P investment in 2017 is expected to remain 40 per cent below the level in 2014, and we expect the operating environment to remain challenging. Estimated capex for FY16 is US$80-90 million, while FY17 may see US$160-180 million of capex. We expect the group to report impairments in its upcoming FY16 results from the cancellation of certain past committed projects that no longer make economic sense. Oil prices are probably already past their worst. Based on a conservative 0.55x FY17F book, we raise our fair value estimate for Ezion to S$0.54, representing an upside potential of about 30 per cent from current levels. Upgrade to "buy".

Singapore telcos >No rating DBS Group Research, Jan 13