Raymond James downgraded Enviva to Market Perform from Strong Buy without a price target. The analyst says there is not enough clarity to have any real confidence about the company resolving its most immediately pressing issue: credit risk, specifically debt covenant. Given the idiosyncratic nature of ongoing negotiations with lenders and a specific customer, “it is not practical to put firm odds on potential outcome,” the analyst tells investors in a research note. The firm believes that beyond immediate concern, it will be a difficult balance for Enviva manage its existing debt while sustaining capacity expansion.
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Read More on EVA:
- Enviva downgraded to Underweight from Neutral at JPMorgan
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