Nomura Securities Starts Akorn (AKRX) at Neutral

Nomura Securities initiates coverage on Akorn (NASDAQ: AKRX) with a Neutral rating and a price target of $44.00.

Analyst Shibani Malhotra commented, "We initiate coverage of Akorn Inc (AKRX), a specialty generic pharmaceutical company focused primarily on difficult-to-make, niche formulation products, with a Neutral rating and target price of $44 based on our DCF analysis. In our view, Akorn is among the best pure-play generics companies, with solid organic growth prospects that should play out as the FDA begins to accelerate pending generics approvals. We also like the company’s continued focus on ‘hard-to-make’ sustainable products and recognize Akorn as an attractive asset in a consolidating generics industry. Still, we remain on the sidelines for now as we lack visibility on whether the company can restate its earnings in time to comply with Nasdaq requirements. We recognize that the announced financial errors seem minor and that the stock has already declined 36.0% through September 24 (vs. a 9.4% decline in the S&P500) since the April 24, 2015 announcement that financials would require restatement. However, there is a risk that AKRX could be delisted from Nasdaq, which could have a further negative impact on the stock price. We expect this overhang to keep AKRX shares range-bound in the near term."

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 $32.06 yesterday.

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