RBC Capital Sees Akorn (AKRX) Margins Regaining mid-40s%

RBC Capital analyst Randall Stanicky reiterated a Sector Perform rating and $5.00 price target on Akorn (NASDAQ: AKRX) after drilling into the model after hosting meetings with management. Although the analyst does not have full visibility into the stability of the base business, he believes difluprednate (Durezol) approval could translate into ~$15 million of EBITDA every 6-months that is not included in models.

Longer term, he believes margins could eventually get back to the mid-40s% and ramp sequentially going forward. He stated "With EBITDA guidance of $71 million to $86 million in 2019E (~50% in 4Q) and "at least doubling" in 2020E that ramp is sharp and will be influenced by several factors".

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 $4.09 yesterday.

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