Jefferies Cuts Price Target on Akorn (AKRX) to $24; Reiterates Buy

November 4, 2016 9:52 AM EDT
Get Alerts AKRX Hot Sheet
Price: $18.29 -3.43%

Rating Summary:
    12 Buy, 7 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 30 | New: 24
Trade AKRX Now!
Join SI Premium – FREE

Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.

Jefferies maintained a Buy rating on Akorn (NASDAQ: AKRX), and cut the price target to $24.00 (from $35.00), following the company's 3Q earnings report. Jefferies lowered estimates as re-inspection issues create more uncertainty. Assuming a 6 month delay expected revenues from pipeline products have been cut by $30M to $55M next year and FY17 total revenues and EPS were adjusted to $1.19B and $2.46 (vs $1.22B & $2.56).

Analyst David Steinberg commented, "Q3 revs & EPS were $17M & $0.02 ahead of consensus despite higher R&D spend & lower gross margin. The results however were overshadowed by the disclosure that the Decatur plant needs to be re-inspected which could result in the delay of 10 (out of 25 expected) ANDA approvals by 1Q17 and a DOJ probe on generic drug price collusion. The sharp 18% selloff (vs 4% for XBI) does not seem fully warranted in our view particularly as AKRX was not named in the DOJ probe."

For an analyst ratings summary and ratings history on Akorn click here. For more ratings news on Akorn click here.

Shares of Akorn closed at $20.27 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Jefferies & Co, Earnings

Add Your Comment