Oppenheimer Maintains an 'Outperform' on TPC Group (TPCG); Preliminary Proxy Not Helping Controversy
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Price: $45.00 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 10 | New: 5
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 10 | New: 5
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Oppenheimer maintains an 'Outperform' on TPC Group (NASDAQ: TPCG) price target of $55.00.
Analyst, Edward Yang, said, "TPCG filed a preliminary proxy in connection with its contested merger agreement with First Reserve Corporation and SK Capital Partners for $40/share cash. The "Background of the Merger" section starting on p. 24 of the proxy details what appears to be a thoughtful multi-month sales process, but: 1) critics are likely to remain skeptical that the company adequately and enthusiastically engaged the multiple anonymous strategic and private equity bidders; 2) the internal estimates provided to Perella Weinberg for its fairness opinion appear low; and 3) the deal multiple at 5.3x '13E FV/EBITDA based on these numbers is not very attractive, in our opinion. We are doubtful that a transaction can close at $40/share given limited downside to rejecting."
For an analyst ratings summary and ratings history on TPC Group click here. For more ratings news on TPC Group click here.
Shares of TPC Group closed at $41.23 yesterday.
Analyst, Edward Yang, said, "TPCG filed a preliminary proxy in connection with its contested merger agreement with First Reserve Corporation and SK Capital Partners for $40/share cash. The "Background of the Merger" section starting on p. 24 of the proxy details what appears to be a thoughtful multi-month sales process, but: 1) critics are likely to remain skeptical that the company adequately and enthusiastically engaged the multiple anonymous strategic and private equity bidders; 2) the internal estimates provided to Perella Weinberg for its fairness opinion appear low; and 3) the deal multiple at 5.3x '13E FV/EBITDA based on these numbers is not very attractive, in our opinion. We are doubtful that a transaction can close at $40/share given limited downside to rejecting."
For an analyst ratings summary and ratings history on TPC Group click here. For more ratings news on TPC Group click here.
Shares of TPC Group closed at $41.23 yesterday.
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