LogMeIn (LOGM): Raising PT On Reverse Morris Trust Transaction Analysis - Needham

October 14, 2016 6:48 AM EDT
Get Alerts LOGM Hot Sheet
Price: $105.95 --0%

Rating Summary:
    8 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 6 | Down: 10 | New: 6
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Needham & Company analyst, Scott Zeller, reiterated his Strong Buy rating on shares of LogMeIn (NASDAQ: LOGM) and raised his price target to $114 from $98. In late July, LOGM and CTXS announced the Reverse Morris Trust transaction in which LOGM will combine with the CTXS GoTo business in a deal valued at $1.8B at the time of the announcement. The analyst examined the available materials post-announcement, including the LOGM S-4 from September 15th, 2016.

The analyst's view is that the initial guidance of “year 1” (CY17) for LOGM+GoTo of (approximately) $1B revenue, $375m Adj EBITDA and $250m FCF is reasonable, and includes $65m of synergies. He plans to update his LOGM estimates once the deal closes in early CY17. Since the announcement of the deal, shares have appreciated roughly +31% (S&P is down approximately 1.5% during that time frame) and trade near $90. The new $114 PT equates to 16x EV/EBITDA CY17.

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

Shares of LogMeIn closed at $89.55 yesterday.

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