Nomura Securities Maintains a 'Neutral' on Cooper Industries (CBE); Don't See Offer Going Much Higher
Tweet Send to a FriendGet Alerts CBE Hot Sheet
Price: $74.50 --0%
Rating Summary:
3 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 20 | New: 17
Rating Summary:
3 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 20 | New: 17
Trade CBE Now!
Nomura Securities maintains a 'Neutral' on Cooper Industries (NYSE: CBE) price target of $68.00.
Analyst, Shannon O'Callaghan, said, "The deal premium looks good on the day, but is modest relative to our expectations. As of 5/2, the stock was at $64, so the premium paid is much higher than the 12% premium to the recent 5/2 price, as well as the 6% premium to our $68 price target. Given that our case for the ongoing entity was for $68, and we think the bull case for the ongoing entity was north of $70, we would have expected a higher price for Cooper in a take-out. We don’t have visibility into another buyer paying more, but given Cooper’s electrical products positions it is logical that others might be interested, but we think those buyers would have already taken a look. On the conference call, management noted that both boards unanimously approved the deal."
(NOTE - Eaton (NYSE: ETN) announces $68 per share offer to acquire CBE)
For an analyst ratings summary and ratings history on Cooper Industries click here. For more ratings news on Cooper Industries click here.
Shares of Cooper Industries closed at $69.88 yesterday, with a 52 week range of $41.15-$71.37.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Shannon O'Callaghan, said, "The deal premium looks good on the day, but is modest relative to our expectations. As of 5/2, the stock was at $64, so the premium paid is much higher than the 12% premium to the recent 5/2 price, as well as the 6% premium to our $68 price target. Given that our case for the ongoing entity was for $68, and we think the bull case for the ongoing entity was north of $70, we would have expected a higher price for Cooper in a take-out. We don’t have visibility into another buyer paying more, but given Cooper’s electrical products positions it is logical that others might be interested, but we think those buyers would have already taken a look. On the conference call, management noted that both boards unanimously approved the deal."
(NOTE - Eaton (NYSE: ETN) announces $68 per share offer to acquire CBE)
For an analyst ratings summary and ratings history on Cooper Industries click here. For more ratings news on Cooper Industries click here.
Shares of Cooper Industries closed at $69.88 yesterday, with a 52 week range of $41.15-$71.37.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Dish Network (DISH) CEO Offers $2 Billion for Lightsquared Spectrum - Bloomberg
- Wall Street Expresses Tepid Enthusiasm on Yahoo! (YHOO) / Tumblr Deal
- UPDATE: Wedbush Downgrades XenoPort (XNPT) to Neutral
Create E-mail Alert Related Categories
Analyst Comments, Mergers and AcquisitionsRelated Entities
Nomura
Login with Facebook
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!
