(Sharecast News) - Jefferies hiked its price target on Burford Capital on Thursday to 1,820p from 1,370p as it said the portfolio was "entering harvest season".
The bank said 2023 could be the year that Burford's large portfolio of litigation assets "starts to mature in earnest".
It noted that Burford has identified 61 material legal milestones affecting its assets, of which 30 are final hearings of one kind or another and could therefore lead to near-term cash recoveries.
"2H22 appears to have shown a material acceleration in case conclusions, and this is likely to continue," it said, adding that progress in the YPF legal case is a bonus.
Jefferies, which rates the shares at 'buy', said YPF could provide a kicker this year and in future.
"Recent success in court against Argentina in the YPF case has led to a significant unrealised gain in that asset which will be reflected in the 1Q23 results due in the first half of June ($285m, of which $185m to Burford itself)," it said.
"We expect further developments this year, including a damages hearing."
Burford Capital (BUR)