J. Crew Agrees To Be Acquired By TPG Capital And Leonard Green & Partners
Oppenheimer has published a research report on J. Crew Group (NYSE: JCG) and has upgraded the company from Not Rated to Outperform.
In the report, Oppenheimer writes "JCG agreed to be acquired by TPG Capital and Leonard Green & Partners, L.P., for $43.50/share or about $3B (a 16% premium to prior day's close). Under terms of the agreement it can receive other offers through 1/15/11. In conjunction with the announcement, disappointing FY3Q10 results and 4Q outlook were provided. However, long-term growth drivers remain intact, including domestic and international ramp (core and new concepts), Madewell, recently introduced factory on line and wedding divisions, strong senior management and a robust balance sheet. We are removing our Outperform rating and $50 PT reflecting the announced transaction and subsequent stock movement."
Oppenheimer has also issued a new $50 price target on J. Crew Group, which closed yesterday at $43.99.
