Canaccord Genuity Remains Bullish as Black Diamond (BDE) Enters Final Stages of Sale Process

Canaccord Genuity reiterates a Buy rating and $16.00 price target on Black Diamond (NASDAQ: BDE) as it enters final stages of sale process. Analyst Camilo Lyon says that BDE is now evaluating the bids received, and continues to believes both brands will be sold to strategic buyers.

Lyon commented, "Now that four months have passed since BDE first indicated it was exploring strategic alternatives for its POC and BDE/PIEPS brands, we believe the company has entered the final stages of the sale process in which it is now evaluating the bids received. We continue to believe that both brands will be sold to a strategic buyer(s), with news of such an event slated to come as early as two weeks but no later than 8 weeks. We suspect the end result will consist of either 1) the whole company being sold to one strategic buyer, or 2) each brand will be sold individually in two transactions. In the latter case, POC would likely be sold first, with BD/PIEPS selling soon thereafter, subject to shareholder approval. We fully expect a transaction to transpire, and commensurately put the probability of a deal not happening at virtually zero. Given the recent pullback in the shares (likely due to macro related volatility more than anything else), we would use the weakness to add to positions. Our sum of the parts valuation supports an equity price in the mid-teens, hence our $16 target. We reiterate our BUY rating."

For an analyst ratings summary and ratings history on Black Diamond click here. For more ratings news on Black Diamond click here.

Shares of Black Diamond closed at $8.94 yesterday.

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