UPDATE: JPMorgan Resumes Tenneco (TEN) at Overweight

June 28, 2022 5:46 AM EDT
Get Alerts TEN Hot Sheet
Price: $19.24 --0%

Rating Summary:
    5 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 23 | New: 34
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(Updated - June 28, 2022 5:47 AM EDT)

JPMorgan analyst Ryan Brinkman resumes coverage on Tenneco (NYSE: TEN) with a Overweight rating and a price target of $20.00.

The analyst comments "The growth of battery electric vehicles not necessitating a portion of Tenneco’s product offerings (e.g., catalytic converters and gasoline and diesel particulate filters), combined with high balance sheet leverage, had led us to earlier remain on the sidelines (Neutral rated, with a $15 December 2022 price target) prior to the announcement of the acquisition of the company by Apollo on February 23, at which time we remained Neutral rated while increasing our December 2022 price target to $20 (when the deal initially seemed highly likely and the shares traded much closer to the transaction price). We then moved to a Not Rated designation on March 21 and now move to an Overweight rating with a $20 December 2022 price target, based on our estimate of the still relatively high likelihood of the acquisition of the company by Apollo for $20.00 per share closing in the back half of 2022. While risk to the downside seems quite substantial in the event the transaction does not go through, we assess this as less likely, and that a renegotiation of the earlier agreed upon transaction (also less likely) could remove upside to our $20 price target but is less likely to entail material downside, as in the event of an abandonment of the transaction."

For an analyst ratings summary and ratings history on Tenneco click here. For more ratings news on Tenneco click here.

Shares of Tenneco closed at $17.29 yesterday.

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