UPDATE: Barclays Upgrades LogMeIn (LOGM) to Overweight
- Donald Trump Sworn in as 45th U.S. President
- U.S. stocks pare gains after Trump's inaugural speech
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Herbalife (HLF) Says SEC Requested Documents on Anti-Corruption Compliance in China; Reviewed with DoJ
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your 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
- Bassett Furniture (BSET) PT Raised to $28 at Stifel Following 4Q EPS Beat
- Hilliard Lyons Upgrades Community Trust Bancorp (CTBI) to Neutral
- JPMorgan Cuts Teva Pharma (TEVA) to Neutral Amid Challenging Generic Environment
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!