UPDATE: DA Davidson Upgrades Jarden Corporation to Buy
DA Davidson raises its rating to Buy and price target to $24 on Jarden Corporation (NYSE: JAH) as tender offer highlights value creation potential of the company's robust cash flows.
DA Davidson says, "After management's proactive actions to improve the share price (tender offer), we believe we have been underestimating the value of Jarden's consistently strong cash generation and have been overly conservative on valuation. With shares trading below 8.0x our revised 2013 EPS estimate and at a 10.7% free cash flow yield on a post tender offer basis, we believe Jarden's substantial discount to other consumer staples companies is overdone."
JAH closed at $37.90 a share on Thursday.
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