BMO Capital Reiterates Outperform on Altra Industrial Motion (AIMC) Following Announced Bond Redemption

BMO Capital reiterated an Outperform rating and $45.00 price target on Altra Industrial Motion (NASDAQ: AIMC) following the company's announcement that it will redeem $85m of 2031 convertible notes. It will satisfy its obligation by delivering common stock to the bondholders.

Analyst Scott Graham commented, "Altra Motion announced it will redeem $85m of 2031 convertible notes. We calculate this as an earnings-neutral transaction with a reduction in leverage. The new shares (+12.8%) could, however, hit the market if the bondholders sell, which they likely will do, in our view. AIMC has declined 11% in two days."

For an analyst ratings summary and ratings history on Altra Holdings click here. For more ratings news on Altra Holdings click here.

Shares of Altra Holdings closed at $35.38 yesterday.

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