Send to a Friend Share

Morgan Joseph Downgrades Clarient (CLRT) to Hold on Acquisition Announcement

October 25, 2010 10:01 AM EDT
CLRT Hot Sheet
Rating Summary:
    0 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Morgan Joseph downgrades Clarient, Inc. (Nasdaq: CLRT) from Buy to Hold.

Morgan analyst says, "Clarient announced that it has entered into a definitive agreement to be acquired by GE Healthcare (NYSE: GE) in a tender offer for $5.00 per common share and $20.00 per preferred share, in each case payable in cash, which is a 33% premium to Clarient's October 22 closing price."

"We value the transaction at 3.6x 2011E revenue, which we believe is about right for a company with 22% revenue growth. For comparison, LabCorp recently agreed to purchase Clarient competitor Genzyme Genetics for $925 million in cash, for a trailing revenue multiple of about 2.5x on 2009 revenue of $371 million."

To see all the upgrades/downgrades on shares of CLRT, visit our Analyst Ratings page.

Shares are currently at $4.98.


Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!

You May Also Be Interested In


Related Categories

Downgrades

Related Entities

Morgan Joseph, GE Healthcare/Clarient

Add Your Comment





Follow StreetInsider.com On Twitter