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- Deutsche Bank started coverage of Burford Capital (NYSE:BUR) with a Buy rating and $18 price target, as the litigation finance company stands to benefit from more corporations outsourcing their litigation.
- “Burford (BUR) manages the world’s largest portfolio of commercial legal assets, and we view it to be uniquely positioned to continue capitalizing on the growing corporate demand given its scale and proprietary data advantages,” analyst Mark DeVries wrote in a note to clients.
- Shares are trading at ~1.25x price to book, compared with its historical average of ~1.5x, providing “an attractive entry point with potential positive catalysts from accelerating revenue growth and favorable litigation developments that could push BUR well beyond our target,” he wrote.
- Deutsche’s Buy rating differs from the SA Quant rating of Hold and more aligns with the average Wall Street rating of Strong Buy.
- Despite the new bull rating, Burford (BUR) stock sank 1.9% in early afternoon trading on Friday amid an overall weak market (i.e., S&P 500 -1.7%).
- Note that a year ago, a U.S. court found in favor of one of its largest clients in a case against Argentina over the client’s stake in government-controlled energy company YPF.
