IEP - Icahn Enterprises: Refinancing And NAV Drop Accentuate Risks For Distribution

2024-02-25 18:00:00 ET

Summary

• Icahn Enterprises has successfully refinanced its 2024 debt, but at a far higher rate.
• The company's estimated net asset value (NAV) has significantly decreased.
• The stock looks poised to go lower as distribution is cut again in the coming quarters.

In our last coverage of Icahn Enterprises L.P. ( IEP ), we pointed out that the distribution was nowhere near safe, despite the large initial cut. We expected another one within a year and felt the risks were materially skewed to the downside. Investors have put those warnings on snooze and the stock is flat since then, providing a nice, albeit market-lagging, total return....

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