Ezra Holdings still vulnerable to execution risks

Such as project delays, cost overruns.

The warning from OCBC came even as Ezra Holdings' share price saw an astounding increase of about 40% in the past week.

This has drawn market attention to Ezra's stock, but OCBC advised companies looking for strategic partnerships with a long-term view to do more research on Ezra's capabilities.

This is because Ezra's operations are still susceptible to hiccups.

"There has been no change to the company’s fundamentals since its disappointing 3QFY13 results," said OCBC.

"Looking ahead, we believe that execution risks are still not over for Ezra, despite an order book of more than US$2b, as this is susceptible to project delays and cost overruns. Without any official offer or significant contract wins, the recent price gain appears overdone," it added.

OCBC cited how the subsea segment had went into the red again with delays in project execution and additional costs that were previously unexpected by management.