UPDATE: Barclays Upgrades LogMeIn (LOGM) to Overweight
- Amazon, health stocks weigh on S&P, Nasdaq; Chevron lifts Dow
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
- AbbVie (ABBV) Tops Q3 EPS by 1c; Boosts FY16 EPS Outlook
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
(Updated - October 3, 2016 12:56 PM EDT)
Barclays upgraded LogMeIn (NASDAQ: LOGM) from Underweight to Overweight with a price target of $105.00 (from $82.00). Analyst Raimo Lenschow called its GoTo deal a "game changer."
"LogMeIn's pending merger with Citrix's divested GoTo assets creates a great new opportunity, in our view. We think cost synergies are likely to come in above the guided range considering the exceptionally high overlap between the businesses. Our confidence here is further bolstered by Elliott Management's decision to take a board seat. Additionally, there are multiple ways to win beyond just outperformance on traditional synergies," said Lenschow.
The analyst added, "We see the merger as motivated by consolidation, rather than TAM expansion. The companies have competing offerings across most of their main product lines. This redundancy provides plenty of areas where duplicative costs can be streamlined, and we expect some of the competing products will be consolidated. The presence of Citrix and Elliott on the new board provides oversight to the integration process from people with experience restructuring software businesses, as well as familiarity running the GoTo business. Any revenue synergies, or even COGS synergies from integrating data centers represent upside to guidance."
Shares of LogMeIn closed at $90.39 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Oppenheimer Upgrades Level 3 Communications (LVLT) to Outperform
- FBR Capital Cuts Price Target on Government Properties Income Trust (GOV) to $25
- Oppenheimer Raises Price Target on Wex, Inc. (WEX) Following 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change, Hot Upgrades, Upgrades
Related EntitiesBarclays, Definitive Agreement
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!