Barclays Maintains an 'Underweight' on Affymetrix (NASDAQ: AFFX; Makes A Bold Move with $330M Deal
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Price: $14.01 --0%
Rating Summary:
4 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
4 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Barclays maintains an 'Underweight' on Affymetrix (NASDAQ: AFFX) price target of $4.00.
Barclays analyst says, "Yesterday AFFX announced an all-cash acquisition of eBioscience for $330M (4.5X revenue & 14X EBITDA for 2011), expected to close 4Q11/1Q12. The deal will be funded through a mix of cash on hand & debt ($170M senior debt, $20M revolver). Note, AFFX is expected to repay the debt within five years and intends to leave ~$95M cash on hand to pay down its existing convert, puttable in Jan 2013. eBioscience is expected to expand overall gross margins by ~250 bps and be $0.08-0.13 accretive to non-GAAP EPS in 2013 (and possibly accretive in 2012, depending on interest rates)."
For an analyst ratings summary and ratings history on Affymetrix click here. For more ratings news on Affymetrix click here.
Shares of Affymetrix closed at $4.52 yesterday.
Barclays analyst says, "Yesterday AFFX announced an all-cash acquisition of eBioscience for $330M (4.5X revenue & 14X EBITDA for 2011), expected to close 4Q11/1Q12. The deal will be funded through a mix of cash on hand & debt ($170M senior debt, $20M revolver). Note, AFFX is expected to repay the debt within five years and intends to leave ~$95M cash on hand to pay down its existing convert, puttable in Jan 2013. eBioscience is expected to expand overall gross margins by ~250 bps and be $0.08-0.13 accretive to non-GAAP EPS in 2013 (and possibly accretive in 2012, depending on interest rates)."
For an analyst ratings summary and ratings history on Affymetrix click here. For more ratings news on Affymetrix click here.
Shares of Affymetrix closed at $4.52 yesterday.
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