Jefferies Thinks Icahn Enterprises’ Stock is Going to Recover

By Jason Carr

Jefferies analyst Daniel Fannon reiterated a Buy rating on Icahn Enterprises (NASDAQ: IEP) yesterday and set a price target of $61. The company’s shares closed yesterday at $46.90, close to its 52-week low of $42.50.

Fannon said:

“IEP reported adjusted EBITDA of +$458M in 2Q16. A +6.0% return within the hedge fund segment mostly offset weaker results everywhere else. The company’s NAV of approx. $30/share was relatively unchanged q/q, halting 8 quarters of decline. Looking ahead, mgmt. remains bearish as the hedge fund ended the quarter approx.”

According to, Fannon is a 4-star analyst with an average return of 4.3% and a 50.9% success rate. Fannon covers the Financial sector, focusing on stocks such as Virtus Investment Partners, Intercontinental Exchange, and WisdomTree Investments.

Icahn Enterprises has an analyst consensus of Hold, with a price target consensus of $45.50.

Based on Icahn Enterprises’ latest earnings report from March 31, the company posted quarterly revenue of $1.92B and quarterly net profit of -$837M. In comparison, last year the company earned revenue of $3.15B and had a net profit of -$440M.

Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is neutral on the stock.

Icahn Enterprises LP is a diversified holding company. It operates through following segments: Investment, Automotive, Energy, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion. The Investment segment is comprised of various private investment funds, including Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP. The Automotive segment holds ownership in Federal-Mogul Corp., which is a supplier to the automotive, aerospace, energy, heavy duty truck, industrial, marine, power generation and railway industries. The Energy segment holds ownership in CVR Energy, Inc., which owns majority interests in two separate operating subsidiaries, CVR Refining, LP and CVR Partners, LP. The Gaming segment holds ownership in Tropicana Entertainment Inc., which owns and operates a diversified, multi-jurisdictional collection of casino gaming properties. The Railcar segment holds ownership in American Railcar Industries Inc., which is a manufacturer of hopper and tank railcars. It provides fleet management, maintenance, engineering and field services. The American Railcar Industries services include maintenance planning, project management, tracking and tracing, regulatory compliance, mileage audit, rolling stock taxes and online service access. The Food Packaging segment holds ownership in Viskase Cos., Inc., which is engaged in production and sale of cellulosic, fibrous and plastic casings for the processed meat and poultry industry. The Metals segment operates through company indirect wholly owned subsidiary, PSC Metals, Inc., which is a one of the independent metal recycling companies in the U.S. and collects industrial and obsolete scrap metal, processes it into reusable forms and supplies the recycled metals to its customers including electric-arc furnace mills, integrated steel mills, foundries, secondary smelters and metals brokers. The Real Estate segment consists of rental real estate, property development and resort activities. The Home Fashion segment operates through company indirect wholly owned subsidiary WestPoint Home LLC, which a manufacturer and distributor of home fashion consumer products. The company was founded on February 17, 1987 and is headquartered in New York, NY.