Barrington Research Downgrades DemandTec (DMAN) to Market Perform; Unlikely Other Suitors Top IBM Offer
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Rating Summary:
1 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barrington Research downgraded DemandTec (NASDAQ: DMAN) from Outperform to Market Perform.
Barrington analyst said, "Upon IBM’s (NYSE: IBM) indication of intent, DemandTec held discussions with four other potential suitors. IBM raised its bid to $13.20 per share (from $12.00) after a “highly credible” buyer offered $13.00. We think that it is unlikely that this buyer (or another party) will continue pursuing DemandTec given the synergies with IBM, a reasonable purchase price, and a $14 million breakup fee. As such, we are lowering our rating."
"We suspect that the four other undisclosed parties could have included private equity firms as well as Oracle (Nasdaq: ORCL) and SAP (NYSE: SAP). Even with pending SaaS acquisitions and prior purchases of DMAN competitors: Oracle-ProfitLogic and SAP-KhiMetrics, these tech bellwethers were likely interested in DemandTec, in our opinion."
For an analyst ratings summary and ratings history on DemandTec click here. For more ratings news on DemandTec click here.
Shares of DemandTec closed at $13.17 yesterday.
Barrington analyst said, "Upon IBM’s (NYSE: IBM) indication of intent, DemandTec held discussions with four other potential suitors. IBM raised its bid to $13.20 per share (from $12.00) after a “highly credible” buyer offered $13.00. We think that it is unlikely that this buyer (or another party) will continue pursuing DemandTec given the synergies with IBM, a reasonable purchase price, and a $14 million breakup fee. As such, we are lowering our rating."
"We suspect that the four other undisclosed parties could have included private equity firms as well as Oracle (Nasdaq: ORCL) and SAP (NYSE: SAP). Even with pending SaaS acquisitions and prior purchases of DMAN competitors: Oracle-ProfitLogic and SAP-KhiMetrics, these tech bellwethers were likely interested in DemandTec, in our opinion."
For an analyst ratings summary and ratings history on DemandTec click here. For more ratings news on DemandTec click here.
Shares of DemandTec closed at $13.17 yesterday.
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