Praxair (PX): A 26% Control Premium Would Still Net 8% ROIC - Jefferies
- Unemployment Rate Drops to 4.6%
- Bond yields fall on U.S. jobs data, euro flat before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
- Mnuchin Wants Fannie (FNMA)/Freddie (FMCC) Out of Government Hands, But Stocks Grossly Overvalued - Keefe, Bruyette & Woods
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
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.
Shares of Praxair Inc. closed at $118.03 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Raises Price Target on Zumiez, Inc. (ZUMZ) to $23 Following 3Q
- UPDATE: Oppenheimer Starts Shopify (SHOP) at Perform
- Oppenheimer Cuts Price Target on Workday (WDAY) Following 3Q; Reiterates Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Mergers and Acquisitions
Related EntitiesJefferies & Co
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!