DA Davidson Downgrades Magma Design (LAVA) to Neutral; A Second Offer Appears Less Likely Following Proxy Statement Details

DA Davidson downgraded Magma Design (NASDAQ: LAVA) to Neutral, price target lowered from $11 to $7.35.

DA analyst says, "Magma recently filed a preliminary proxy statement that outlines the details leading up to the offer by Synopsys (Nasdaq: SNPS)(BUY) to acquire the company. Based on these details we believe the likelihood of Magma receiving a higher offer from a third party is much smaller than we initially thought. Over the past ten months, Magma engaged in discussions with multiple parties, including both private equity firms and the other publicly traded EDA companies that we believe include Cadence (Nasdaq: CDNS)(NEUTRAL), Mentor (Nasdaq: MENT)(BUY) and Ansys (Nasdaq: ANSS). However, given the lack of interest from the
other industry players, we believe Synopsys’ current offer price of $7.35 per share is likely to remain the final offer."

For an analyst ratings summary and ratings history on Magma Design click here. For more ratings news on Magma Design click here.

Shares of Magma Design closed at $7.17 yesterday.

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