A Full Takeover of PSS World Medical (PSSI) Makes Sense - Analyst
Tweet Send to a FriendGet Alerts PSSI Hot Sheet
Price: $28.92 --0%
Rating Summary:
0 Buy, 4 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
0 Buy, 4 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade PSSI Now!
Despite a weak broader market, PSS World Medical (NASDAQ: PSSI) shares have a pep in their step this morning. This after analysts highlighted the company as a good takeover target.
Analysts at UBS note that now that PSSI has officially put some of its assets up for sale, "it would not be surprising to us if some of the logical parties that may be interested in buying the discontinued operations within PSSI may also be interested in potentially buying the whole company if it were for sale."
While the firm said their is not specific reason to believe this will be the case, they also note that late last week PSSI filed an 8-K disclosing changes in executive severance upon termination in the event of a change in control of PSSI,
McKesson Corporation (MCK) makes the most sense as a buyer, since it has the most operational overlap. Under a theoretical $35/share takeover, the firm notes a deal would be transaction would be ~5% accretive to EPS over 2-3 years.
The firm reiterated their Buy rating and price target of $26.
For an analyst ratings summary and ratings history on PSS World Medical click here. For more ratings news on PSS World Medical click here.
Shares of PSS World Medical are up 2.1 percent to $21.91.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analysts at UBS note that now that PSSI has officially put some of its assets up for sale, "it would not be surprising to us if some of the logical parties that may be interested in buying the discontinued operations within PSSI may also be interested in potentially buying the whole company if it were for sale."
While the firm said their is not specific reason to believe this will be the case, they also note that late last week PSSI filed an 8-K disclosing changes in executive severance upon termination in the event of a change in control of PSSI,
McKesson Corporation (MCK) makes the most sense as a buyer, since it has the most operational overlap. Under a theoretical $35/share takeover, the firm notes a deal would be transaction would be ~5% accretive to EPS over 2-3 years.
The firm reiterated their Buy rating and price target of $26.
For an analyst ratings summary and ratings history on PSS World Medical click here. For more ratings news on PSS World Medical click here.
Shares of PSS World Medical are up 2.1 percent to $21.91.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Dover (DOV) Latest Diversified Industrial to Announce Streamlining; More to Follow?
- Topeka Capital Starts RDA Microelectronics (RDA) at Buy
- Jazz Pharma (JAZZ) Could Be Takeout Target
Create E-mail Alert Related Categories
Analyst Comments, RumorsRelated Entities
UBS
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
