(ABM FN) On Tuesday, ING downgraded its recommendation to Mithra Pharmaceuticals from buy to hold, while its price target fell from €22.00 to €2.80.
Analysts at the bank are worried about operational risks, as a US deal to buy Donesta remains missing, while a lawsuit also pending for more than €31m in unpaid advances from Mithra to PCAS.
In addition, there are financial risks, as all debts have to be refinanced in the second half of 2023, leading shareholders to fear dilution. With a debt of 300 million euros at the end of 2022 and a market capitalization of 155 million euros, the relief would be “significant”, according to ING.
This would be negative for the stock in the short term, and it’s a strategically logical choice for Mithra to start over with a clean slate, according to ING.
Mithra’s share fell 2.0 percent on Tuesday to 2.50 euros.
Source: ABM Financial News
Following editors from Beursplein 5 ABC Financial News Developments on stock exchanges, and the Amsterdam Stock Exchange in particular, closely watched. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
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