Mizuho Securities Downgrades CST Brands (CST) to Neutral Following Takeover
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Mizuho Securities downgraded CST Brands (NYSE: CST) from Buy to Neutral with a price target of $48.53 (from $45.00) after the company agreed to be acquired by Couche-Tard.
Analyst Betty Chen commented, "We are downgrading shares to Neutral from Buy and raising our PT to $48.53 (from $45.00) as we see limited upside following the acquisition announcement. CST entered into a definitive merger agreement in which Alimentation Couche-Tard will acquire CST for $48.53 per share or $4.4bn. While the valuation of ~11.6x LTM EBITDA is below other transactions, we applaud management’s efforts in unlocking shareholder value as the transaction represents a 42% premium since the company’s initial plans for a strategic review on 3/3/16."
Shares of CST Brands closed at $47.51 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Microsoft (MSFT) and LinkedIn's (LNKD) Proposed Merger Cleared in Europe, with Conditions
- Credit Suisse Upgrades Juniper Networks (JNPR) to Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesDefinitive Agreement
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!