Stock Upgraded: Ezra Holding target price raise to 5.14 by Kim Eng!

Kim Eng Securities said it has raised its target price for Ezra Holdings to 5.14 sgd from 4.05 after the company won its first floating production storage and offloading charter contract worth up to 397. 25 mln usd. Kim Eng said this is Ezra's largest and most significant contract to date and marks its first entry into the FPSO market. With this deal, Ezra becomes the first Singapore company to operate an FPSO, widening the range of services it provides to clients and propelling it onto a global stage, it said. "To be sure, this is a very positive development for Ezra; we expect the contracts to lift earnings significantly in the medium term," the brokerage said in a note. "We expect yearly contributions to the tune of 25 mln sgd from the year to August 2008," it added. The brokerage is keeping its "buy" call on the stock, given its current attractive valuation. At 3.04 pm, Ezra was up 0.26 sgd or 7.69 pct at 3.64 on volume of 1.28 mln shares.