Three Wall Street Firms Downgrade Solutia (SOA) to Market Perform/Neutral; Another Competing Bid Unlikely
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Price: $27.82 --0%
Rating Summary:
0 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
Rating Summary:
0 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
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This morning, three firms downgraded Solutia (NYSE: SOA) from Outperform/Buy to Market Perform/Neutral, apparently thinking there won't be additional bids for the company.
Earlier Friday morning (Jan 27), Eastman Chemical Company (NYSE: EMN) announced it will acquire Solutia for $22.00 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock. The total transaction value is approx. $4.7 billion. Eastman said the deal is expected to be immediately accretive to earnings and sees $100 mln in cost saving synergies.
The firms that downgraded SOA this morning include: Macquarie, Lazard Capital and Wells Fargo.
The Wells analyst said, "We are downgrading our rating from Outperform to Market Perform reflecting full valuation post the EMN acquisition news. With the shares now trading above our previous valuation range, at nearly 8x our 2012 EBITDA estimate, and with the likelihood of another competing bid unlikely, in our view, we find further appreciation potential limited."
Earlier Friday morning (Jan 27), Eastman Chemical Company (NYSE: EMN) announced it will acquire Solutia for $22.00 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock. The total transaction value is approx. $4.7 billion. Eastman said the deal is expected to be immediately accretive to earnings and sees $100 mln in cost saving synergies.
The firms that downgraded SOA this morning include: Macquarie, Lazard Capital and Wells Fargo.
The Wells analyst said, "We are downgrading our rating from Outperform to Market Perform reflecting full valuation post the EMN acquisition news. With the shares now trading above our previous valuation range, at nearly 8x our 2012 EBITDA estimate, and with the likelihood of another competing bid unlikely, in our view, we find further appreciation potential limited."
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