Send to a Friend Share

Wedbush Downgrades J. Crew Group (JCG) to Neutral; Acquisition by TPG and Leonard Green

November 23, 2010 4:52 PM EST
JCG Hot Sheet
Rating Summary:
    1 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wedbush downgraded J. Crew Group (NYSE: JCG) from Outperform to Neutral. PT increased from $40 to $43.50.

Wedbush analyst says, "JCG announced a definitive agreement to be acquired by TPG Capital and Leonard Green & Partners for $43.50/share valued at ~$3.0 billion and represents ~15.5% premium to the stock’s closing price as of 11/22. We believe the completion of the acquisition is likely given the full support by the Board of Directors and do not expect any competing bids as other quality retailers, including American Eagle (NYSE: AEO), Aeropostale (NYSE: ARO), Chico's (NYSE: CHS), and Children's Place (Nasdaq: PLCE), are trading at a discount to the take-out multiples offered to Gymboree (Nasdaq: GYMB) and JCG."

For more ratings news on J. Crew Group click here and for the rating history of J. Crew Group click here.

Shares of J. Crew Group closed at $37.65 yesterday, with a 52 week range of $30.06-$50.96.


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

Add Your Comment





Follow StreetInsider.com On Twitter