- Cowen has downgraded Invitae ( NYSE: NVTA ) to market perform from outperform following uncertainty related to debt refinancing.
- The firm also trimmed its price target to $2.5 from $8 (~17% upside based on Monday's close).
- Shares are down 9% in Tuesday morning trading.
- Invitae has a $135M loan and a $350M convertible loan, both of which analyst Dan Brennan said can be refinanced.
- However, "the timing, uncertainty around the mechanism, costs/dilution, and default potential are likely to cap the stock, limiting follow-through from the new plan presented by the new CEO and existing CFO," he added.
- Invitae ( NVTA ) just announced an operational realignment and also promoted its COO to CEO .
For further details see:
Invitae downgraded to market perform at Cowen on timing uncertainty for debt refinancing