Barrington Research Maintains Outpeform, $12 PT on CTS Corporation

In a research note, Barrington Research reiterates its Outperform rating and $12 price target on CTS Corporation

as the company announced definitive merger agreement with publicly traded Valpey-Fisher

. According to Barrington, “CTS will be paying for the acquisition entirely in cash. This acquisition should by no means stretch the company's balance sheet, which remains healthy overall with long-term debt totaling $89.7 million and stockholders' equity of $291.1 million representing a debt-to-capitalization ratio of 23.6%. Cash and cash equivalents was $89.2 million at the end of Q3/11 and management is expecting full-year free cash flow in the range of $15-18 million for 2011.” CTS closed at $8.52 per share on Thursday.