KeyBanc Downgrades Cogdell Spencer (CSA) to 'Hold' Following All Cash Offer
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Price: $66.16 --0%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 8
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 8
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KeyBanc downgraded Cogdell Spencer (NYSE: CSA) from Buy to Hold.
KeyBanc analyst said, "We are downgrading CSA to HOLD following an announcement that Ventas Inc. (NYSE: VTR) will acquire the Company's medical office portfolio for $4.25 per share in cash. Additionally, CSA's Erdman design/build subsidiary will be sold to a private equity firm for a nominal value. The deal price reflects an 8.4% premium to Friday's closing price, but it is somewhat disappointing to us given our NAV near $6 per share. An estimated cap rate of 8% on the portfolio excluding transaction costs seems to be at the high end of the range being paid for MOBs in the market today. That said, we believe that CSA fully shopped the transaction to potential buyers and there is a break-up fee, making a higher offer possible but unlikely, in our view."
For an analyst ratings summary and ratings history on Cogdell Spencer click here. For more ratings news on Cogdell Spencer click here.
Shares of Cogdell Spencer closed at $3.92 yesterday.
KeyBanc analyst said, "We are downgrading CSA to HOLD following an announcement that Ventas Inc. (NYSE: VTR) will acquire the Company's medical office portfolio for $4.25 per share in cash. Additionally, CSA's Erdman design/build subsidiary will be sold to a private equity firm for a nominal value. The deal price reflects an 8.4% premium to Friday's closing price, but it is somewhat disappointing to us given our NAV near $6 per share. An estimated cap rate of 8% on the portfolio excluding transaction costs seems to be at the high end of the range being paid for MOBs in the market today. That said, we believe that CSA fully shopped the transaction to potential buyers and there is a break-up fee, making a higher offer possible but unlikely, in our view."
For an analyst ratings summary and ratings history on Cogdell Spencer click here. For more ratings news on Cogdell Spencer click here.
Shares of Cogdell Spencer closed at $3.92 yesterday.
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