Deutsche Bank Sees Buying Opportunity in Syngenta (SYT)
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Deutsche Bank maintained a Buy rating on Syngenta (NYSE: SYT) with a price target of CHF430. Analyst Virginie Boucher-Ferte said its deal with ChemChina is still likely to close, although in a worst case it could be delayed. Related weakness is seen as a "buying opportunity."
Earlier reports said ChemChina didn't meet deadlines in Europe for concessions.
"According to Bloomberg, the EU commented that they did not receive any concessions from ChemChina on the deal by Oct 21st which was the deadline to submit remedies. They EU decision deadline to approve the deal or require a phase II review is Oct 28th. We remain of the view that antitrust issues are not a 'deal breaker' in the ChemChina/Syngenta case and ultimately the deal will go through (worst case scenario with a delay) so we see the current share price weakness as a buying opportunity," said Boucher-Ferte.
The analyst sees three possible outcomes/scenarios after this phase I review -- no remedies needed, political pressures delaying the process, or ChemChina buying themselves more time to find financing (unlikely scenario).
Shares of Syngenta closed at $85.11 yesterday.
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