UBS Downgrades LDR Holding (LDRH) to Neutral

UBS downgraded LDR Holding (NASDAQ: LDRH) from Buy to Neutral with a price target of $37.00 (from $33.00).

Analyst Matt Miksic commented, "We are downgrading LDRH to Neutral from Buy and raising our price target to $37 from $33 following Zimmer Biomet’s announcement of the pending deal. Our new target reflects the value of the offer, using LDRH’s share count of 29.2 mil stocks at a $37 offer price (~$1 bil). We expect the stock to trade primarily on the deal price and less on the fundamentals going forward. The transaction is expected to close in 3Q16, subject to customary closing conditions. Strategically speaking, we believe the deal makes sense given that ZBH is a relatively small player in Spine and has been struggling to grow at or above market. We believe the acquisition of LDRH will add several highgrowth, differentiated products to ZBH’s spine portfolio, which should help improve growth and engagement with surgeons. We remain Neutral on ZBH."

For an analyst ratings summary and ratings history on LDR Holding click here. For more ratings news on LDR Holding click here.

Shares of LDR Holding closed at $37.04 yesterday.

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