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Oppenheimer Defends Amira Nature Foods Following The Release Of Negative Research Report


Oppenheimer analyst Rupesh Parikh came out today with a favorable note on Amira Nature Foods (NYSE:ANFI), following the publication of a negative report by Prescient Point Research Group, alleging the company involvement in fraudulent transactions. The analyst rates the stock an Outperform with a $20 price target.

Parikh commented: “A few weeks ago, we initiated coverage of ANFI shares with an Outperform rating (1/6/15 at $12.94). In the past few days, the shares have declined more than 35% driven lower by a negative research report on the name. Yesterday (2/10), ANFI published a statement disputing the validity of the report. We continue to believe the share price, at about 5x our FY15 EBITDA forecast, significantly undervalues the company’s prospects. We are optimistic that a successful US debt offering or increased borrowing capacity in India along with more disclosures from management over time could help to restore confidence in the story. However, with the continued significant volatility in the name, we view ANFI as more appropriate for investors with a longer-term horizon. Valuation alone has not helped in creating a floor for the shares lately.”

Genworth Financial, Inc., a financial services company, provides insurance, investment, and financial solutions in the United States and internationally.