NN, Inc (NNBR) Life Sciences Sale Increases Cash Flow, 15% Upside Still Remains -William Blair

William Blair analyst Nicholas Heymann reiterated an Outperform rating on NN, Inc (NASDAQ: NNBR) after the company announced a definitive agreement to sell its Life Sciences business to affiliates of American Securities LLC for $825 million, of which $755 million will be paid in cash at the closing of the transaction with an additional $70 million earn-out payable in cash based on the 2022 performance of the Life Sciences business.

The analyst stated "We continue to recommend NN and rate it Outperform. We believe the shares should offer upside of 15% or more over the next 12 months. Our new SOTP valuation for NN is $6.41, or 15% above its closing price of $5.48. We project NN’s 2021 free cash flow should increase more than 55%, to $0.53 per share in 2021 from $0.33 per share estimated for 2020".

For an analyst ratings summary and ratings history on NN, Inc click here. For more ratings news on NN, Inc click here.

Shares of NN, Inc closed at $5.48 yesterday.

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