Mizuho Securities Downgrades CST Brands (CST) to Neutral Following Takeover
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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.
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