Burford Capital downgraded to Neutral from Outperform at Wedbush

Wedbush downgraded Burford Capital (BUR) to Neutral from Outperform with a price target of $4.75, down from $6, after the company published a detailed press release discussing its view on the U.S. Appeals Court’s adverse ruling on the YPF matter. Included in this release was the comment that any fair value marks could result in Burford triggering net worth requirements which could prevent the company from issuing additional debt. While there is no immediate issue tied to this, the restriction could result in the company altering growth targets to enhance cash generation, the firm argues. This adds, in addition to the much-discussed legal risk factor, a financial risk factor into the discussion.