Sharp Corp. is facing an increasing risk of liquidation if a rescue deal with Foxconn Technology Group is delayed further, according to a top-rated analyst tracking the electronics maker.
Jefferies Groups Atul Goyal raised his estimated likelihood of Sharps liquidation to a new threshold of 30 percent to 40 percent from less than 5 percent, citing the potential violation of the Japanese companys debt covenants. The Singapore-based analyst, who shares the top spot in Bloombergs absolute return ranking with two other peers covering Sharp, has a 100 yen price target on the company. The stock closed 1.6 percent higher at 131 yen in Tokyo on Wednesday.
About a month has passed since Sharps board chose Foxconns bailout of more than 600 billion …
Read the full article at: http://www.bloomberg.com/news/articles/2016-03-23/sharp-s-top-rated-analyst-foxconn-delay-raises-liquidation-risk