DigitalBridge Group Inc. (DBRG)to be Acquired by SoftBank Group, Truist Reiterates Buy

Truist Securities analyst Anthony Hau reiterated a Buy rating and $16.00 price target on DigitalBridge Group Inc. (NYSE: DBRG).

The analyst commented: "DBRG to be Acquired by SoftBank Group Corp. for $16.00 per Share; SoftBank Group (SFTBY, NR) announced it has entered into a definitive agreement to acquire DigitalBridge in an all-cash transaction valuing the company at an enterprise value of approximately $4.0B.

From a valuation standpoint, we view $16.00 per share as fair, though not fully reflective of the company’s long-term optionality. The offer does not capture the full potential value of future carried interest nor the embedded upside from unlocking DigitalBridge’s approximately 21GW power bank. That said, we remain skeptical that public market investors would have ever consistently ascribed meaningful value to carry without a long, proven realization history. In this context, DigitalBridge is likely better positioned as a private company, where management can focus on fundraising, execution, and long-term value creation without the constraints of public market scrutiny. Overall, while the transaction may not maximize theoretical upside, we believe it represents a pragmatic and sensible resolution for a company whose business model was structurally misaligned with public market expectations."

For an analyst ratings summary and ratings history on DigitalBridge Group Inc. click here. For more ratings news on DigitalBridge Group Inc. click here.

Shares of DigitalBridge Group Inc. closed at $15.26 yesterday.

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