Praxair (PX): A 26% Control Premium Would Still Net 8% ROIC - Jefferies

August 16, 2016 7:45 AM EDT
Get Alerts PX Hot Sheet
Price: $119.44 -0.24%

Rating Summary:
    6 Buy, 14 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 30 | New: 42
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Jefferies analyst, Lawrence Alexander, reiterated his Buy rating on shares of Praxair Inc. (NYSE: PX) and noted that a Praxair-Linde tie-up would be another twist in the M&A rumors but not the most unlikely. Asset disposals are hardly crippling in a business of regional oligopolies, and the transaction could fix strategic challenges for both companies. The analyst estimates Praxair could pay a 26% control premium, 50% equity, and still achieve an 8% ROIC in FY3 and improve FCF/Share by $1.70.

The analyst did not change his price target of $140.

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

Shares of Praxair Inc. closed at $118.03 yesterday.



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