UPDATE: UBS Downgrades Patriot National (PN) to Neutral
- Netflix, Inc. (NFLX) Tops Q4 EPS by 1c; Subs Beat Views
- S&P 500 ends up slightly with boost from financials; Netflix up late
- Nestle Said Examining Takeover of Mead Johnson (MJN) - Source
- La Quinta Holdings (LQ) Gains on Plan to Split in Two
- After-Hours Stock Movers 01/18: (OCLR) (CSX) (NFLX) Higher; (AMDA) (RCII) (ZYNE) Lower (more...)
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
(Updated - November 16, 2016 9:04 AM EST)
UBS downgraded Patriot National (NYSE: PN) from Buy to Neutral with a price target of $6.50 (from $12.00). Analyst Brian Meredith thinks its credit facility will be a drag on earnings.
"We estimate that the new term loan will lower our 2017 and 2018 EPS estimates by approximately 25% due to both the higher interest rate (8.25% versus 3.94% on the old BMO term loan) and increased debt load. The new credit facility increases our estimated 2017 interest expense from $7.5mm to $20.1mm, which negatively affects our 2017 EPS estimate by $0.28/sh. We estimate that the special dividend will consume $67mm of the cash on hand, with interest and amortization hurting cash flow by $26mm in 2017 and $28.5mm in 2018, hurting PN's financial flexibility," said Meredith.
Shares of Patriot National closed at $6.29 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Downgrades Dynegy (DYN) to Sell
- BTIG Raises Price Target on CardConnect Corp. (CCN) to $17; Reiterates Buy
- NetEase (NTES) PT Raised To $305 At Goldman Sachs, Maintains Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change, Downgrades
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!