Burford downside limited from current levels, says Deutsche Bank

Deutsche Bank sees limited downside from in Burford Capital (BUR) shares from current levels. The recent selloff creates a “compelling” risk/reward profile, the analyst tells investors in a research note. The “disappointing” decision by the Second Circuit to reverse the District court’s prior ruling in the YPF case will likely trigger a significant mark down in Burford’s equity when it reports Q1 results in the coming week, the analyst tells investors in a research note. Deutsche says its $7 price target on Burford ascribes zero value to YPF. The firm’s analysis suggests the company should generate sufficient realizations over the next two years to retire maturities while still funding new business opportunities.