
BUR Stock Forecast & Price Target
BUR Analyst Ratings
Bulls say
Burford Capital Ltd has demonstrated a robust financial performance, highlighted by a 16% year-over-year increase in Burford-only capital provision direct realizations, amounting to $155 million for the second quarter of 2024. Cumulative realizations of $2.9 billion since inception, coupled with an impressive 86% return on invested capital (ROIC), underscore the company's effective investment strategy and operational efficiency. Additionally, the total group-wide portfolio grew to $7.3 billion, reflecting a sequential increase and strong portfolio activity that is expected to further enhance earnings growth moving forward.
Bears say
The financial analysis of Burford Capital indicates a negative outlook mainly due to a significant decline in cash receipts, which fell by 28% sequentially in the second quarter, highlighting concerns over cash generation despite a consistent performance over the previous eight quarters. Furthermore, the firm's inability to accurately predict realizations and deployments, along with a decreasing number of new business metrics compared to the previous year, raises doubts about future growth potential. Additionally, the persistent lack of transparency in legal cases and the inherent unpredictability in fair value accounting contribute to a heightened risk for investors, complicating the assessment of the company’s financial stability.
This aggregate rating is based on analysts' research of Burford Capital Limited and is not a guaranteed prediction by Public.com or investment advice.
BUR Analyst Forecast & Price Prediction
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