Ebix cut to Hold at Craig-Hallum yesterday following delayed 10-Q filing

As previously reported yesterday morning, Craig-Hallum downgraded Ebix to Hold from Buy with a price target of $5, down from $20. The analyst is citing only five days remaining to the company’s end of the current forbearance agreement with creditors along with its delayed 10-Q filing, adding that the firm has “no information advantage” as to whether Ebix gets additional time from the lenders or the lenders decide to put the company in bankruptcy. There is equity value well beyond the current debt levels, but should Ebix go into bankruptcy, timelines and process around extracting that value get messy and are beyond the firm’s ability to predict, the analyst added.