Refinancing of Debt Helps Alkermes (ALKS) Save Cash, MKM Reiterates Buy, Raises PT
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Price: $48.69 -2.97%
Rating Summary:
17 Buy, 8 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
Rating Summary:
17 Buy, 8 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
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Alkermes (NASDAQ: ALKS) completed the refinancing of its senior secured debt and reduced the company’s overall debt from approximately $450mn to $375mn. The new term loans will have a lower blended interest rate of 4.4%, compared to the prior blended interest rate of 7.6%, which is expected to result in savings of approximately $18mn in cash interest annually, noted a report today by MKM Partners.
“Based on lower expected interest expense, we are increasing our 2013-2016 EPS estimates and, as a result of the decrease in total debt and expected interest expense, we are increasing our price target,” said analyst Jon LeCroy.
“We see opportunity for further upside to our estimates when JNJ (NYSE: JNJ) reports Risperdal Consta and Invega Sustenna numbers on October 16,” he said.
MKM Partners has a Buy rating on Alkermes with a modified price target of $22.00 (from $21.00).
For an analyst ratings summary and ratings history on Alkermes click here. For more ratings news on Alkermes click here.
Shares of Alkermes closed at $20.44 yesterday.
“Based on lower expected interest expense, we are increasing our 2013-2016 EPS estimates and, as a result of the decrease in total debt and expected interest expense, we are increasing our price target,” said analyst Jon LeCroy.
“We see opportunity for further upside to our estimates when JNJ (NYSE: JNJ) reports Risperdal Consta and Invega Sustenna numbers on October 16,” he said.
MKM Partners has a Buy rating on Alkermes with a modified price target of $22.00 (from $21.00).
For an analyst ratings summary and ratings history on Alkermes click here. For more ratings news on Alkermes click here.
Shares of Alkermes closed at $20.44 yesterday.
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