Akorn (AKRX) Pursuing Chapter 11 is a Possibility Not a Probability - Raymond James

Raymond James analyst Elliot Wilbur reiterated a Market Perform rating on Akorn (NASDAQ: AKRX) as shares pull back, digesting the 8-K disclosures contained released Monday that spurred concerns of potential Chapter 11 scenarios.

The analyst stated Fundamental dynamics just don’t seem consistent with a sudden need to consider Chapter 11, unless conditions have deteriorated substantially in recent weeks due to undisclosed factors, which seems unlikely in our view. While the delayed equity reaction was sharply negative, AKRX’s credit pricing has actually improved modestly suggesting at least that lenders believe they are money good on the company’s outstanding $845M in term debt. Further buffering the debt
burden is in excess of $200M of cash on hand". "There are many inconsistencies here but nothing in recent financials supports the idea that bankruptcy is anything more than a possibility, in our view, opposed to the probability that equity markets seemed to have determined existed today".

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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 $2.19 yesterday.

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