Agilent (A) is Worth $65/Share Broken Up - Cramer
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Price: $131.46 -3.41%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.8%
Revenue Growth %: +5.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.8%
Revenue Growth %: +5.7%
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Could Agilent Technologies (NYSE: A) deliver more shareholder value via a breakup? Stock savant Jim Cramer thinks so.
On Monday night, Cramer mentioned that Agilent is performing okay in 2013, up 10 percent for the year, but lagging broader markets. He notes that gains in the cyclical electronics and testing division have been reduced due to performance in its life sciences and chemical division.
As mentioned, Cramer thinks Agilent would be more valuable in a break up, or a potential acquirer could come in and scoop the whole thing up. For the acquirer, Cramer picks Danaher (NYSE: DHR), which already has a lot of synergies with Agilent. Danaher management also indicated that they'd like more life science exposure.
By-parts, Cramer thinks the cyclical electronics and testing division is worth $8.3 billion while the life sciences and chemical division is worth $14.3 billion, for a total of $22.6 billion, or $65 per share. That's a 43 percent premium to Monday's close at $45.51.
Shares are up 1.3 percent Tuesday.
On Monday night, Cramer mentioned that Agilent is performing okay in 2013, up 10 percent for the year, but lagging broader markets. He notes that gains in the cyclical electronics and testing division have been reduced due to performance in its life sciences and chemical division.
As mentioned, Cramer thinks Agilent would be more valuable in a break up, or a potential acquirer could come in and scoop the whole thing up. For the acquirer, Cramer picks Danaher (NYSE: DHR), which already has a lot of synergies with Agilent. Danaher management also indicated that they'd like more life science exposure.
By-parts, Cramer thinks the cyclical electronics and testing division is worth $8.3 billion while the life sciences and chemical division is worth $14.3 billion, for a total of $22.6 billion, or $65 per share. That's a 43 percent premium to Monday's close at $45.51.
Shares are up 1.3 percent Tuesday.
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