Canaccord Genuity Morning Coffee on Pep Boys (PBY): Manny, Moe & Jack Go Private
Tweet
Share
E-mailGet Alerts PBY Hot Sheet
Price: $25.00 --0%
Rating Summary:
3 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
3 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Join SI Premium – FREE
Canaccord Genuity Morning Coffee on Pep Boys (NYSE: PBY): Manny, Moe & Jack go private.
Pep Boys is being taken out by private equity firm Gores Group in a deal worth about $791 million. Gores is offering $15 a share for Pep Boys, a 24% premium to Friday’s close, and management at Pep Boys said the total enterprise value of the deal, expected to close in the second quarter of 2012, is about $1 billion. Gores’ offer provides a 45- day “go shop” period, where Pep Boys can seek proposals from other parties, something that may be of interest to investors as the autoparts industry attracts more attention.
Canaccord Genuity Portfolio Strategist Martin Roberge recently highlighted the autoparts sector as one of his top ideas for 2012. He notes that the average age of a vehicle in the U.S. has topped 10 years, implying drivers will either have to upgrade or repair their cars in the near future. A Barron’s article published two weeks ago echoed this sentiment and specifically highlighted Pep Boys as an investment to capitalize on the trend given its strong balance sheet and attractive valuation.
Pep Boys is being taken out by private equity firm Gores Group in a deal worth about $791 million. Gores is offering $15 a share for Pep Boys, a 24% premium to Friday’s close, and management at Pep Boys said the total enterprise value of the deal, expected to close in the second quarter of 2012, is about $1 billion. Gores’ offer provides a 45- day “go shop” period, where Pep Boys can seek proposals from other parties, something that may be of interest to investors as the autoparts industry attracts more attention.
Canaccord Genuity Portfolio Strategist Martin Roberge recently highlighted the autoparts sector as one of his top ideas for 2012. He notes that the average age of a vehicle in the U.S. has topped 10 years, implying drivers will either have to upgrade or repair their cars in the near future. A Barron’s article published two weeks ago echoed this sentiment and specifically highlighted Pep Boys as an investment to capitalize on the trend given its strong balance sheet and attractive valuation.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Emkay Global Starts Urban Company (URBANCO:IN) at Buy (1)
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Walmart (WMT) PT Lowered to $125 at JPMorgan, Overweight Rating Maintained as 'Short Case Feels Greedy'
Create E-mail Alert Related Categories
Analyst Comments, Mergers and AcquisitionsRelated Entities
Barron'sSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
