Stifel Nicolaus Raises PT To $25 On SFE In Morning Summary

Stifel Nicolaus has raised its price target from $23 to $25 on Safeguard Scientifics

and is maintaining its Buy rating on the stock. Says Stifel Nicolaus, in the summary, “Safeguard Scientifics (SFE, Buy) has announced that Advanced BioHealing (

) has been acquired by Shire Pharmaceuticals for $750 million in cash. Safeguard has an approximate 24% ownership of ABH and management indicated the sale will equate to approximately $140 million in proceeds to SFE which is in line with our previously published expectations of value. With this exit we estimate SFE has $13.70 of net cash on the balance sheet (stock is currently at $19.23). We estimate book value will increase by $6.50/share to $17.90 as SFE previously held ABH at $0.20/share on its balance sheet. Following this announcement we are raising our sum of the parts target price to $25 from $23 which implies a 12 month return of 30% from current levels.” SFE closed at $19.23 yesterday.