Kinetic Concepts (KCI) Could Get $69-$73/Share from Private-Equity Buyer -BofA
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Price: $68.47 --0%
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Following rumors of private-equity interest in Kinetic Concepts (NYSE: KCI) and the resulting 12 percent surge in the stock Wednesday, analysts at BofA Merrill are commenting Thursday morning.
The firm believes a PE buyer could pay anywhere from $69 to $73 per share for Kinetic Concepts, assuming an internal rate of return in the 16-18 percent range. BofA argues a strategic buyer coming into the mix is unlikely.
BofA moved to "no rating" on Kinetic Concepts following the news.
With shares of Kinetic Concepts down 1.7 percent to around $65.15 this afternoon, the midpoint of BofA's target implies further upside of about 9 percent in the stock.
Late Wednesday, an analyst at Madison Williams said the company could be taken out for as much as $75 per share.
Visit our Analyst Ratings page to track all the market-moving analyst comments following the PE interest.
The firm believes a PE buyer could pay anywhere from $69 to $73 per share for Kinetic Concepts, assuming an internal rate of return in the 16-18 percent range. BofA argues a strategic buyer coming into the mix is unlikely.
BofA moved to "no rating" on Kinetic Concepts following the news.
With shares of Kinetic Concepts down 1.7 percent to around $65.15 this afternoon, the midpoint of BofA's target implies further upside of about 9 percent in the stock.
Late Wednesday, an analyst at Madison Williams said the company could be taken out for as much as $75 per share.
Visit our Analyst Ratings page to track all the market-moving analyst comments following the PE interest.
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