Brokers' take

Ezra Holdings | Hold Target price: S$0.08 Jan 18 close: S$0.064 DBS Group Research, Jan 18

Ezra reported a net loss of US$55.3 million for Q1FY16, much steeper than expected, even after adjusting for a US$13.9 million hedging loss. Utilisation of the subsea fleet was poor - below 50 per cent - amidst a lack of jobs in the market as low oil prices take their toll. We are now projecting core net loss of around US$98 million in FY16 and US$68 million in FY17, higher than our previous net loss estimates of US$20-24 million.

Ezra's valuations look very depressed at the moment but given the weak oil price outlook, potential heavy losses, and vulnerability to interest rate hikes, we do not see any investment merit for the stock. Downgrade to "Hold".