UPDATE: Benchmark Downgrades eResearch Technology to Hold
Benchmark lowers its rating on eResearch Technology (NASDAQ: ERT) to Hold from Buy following a sale agreement with Genstar Capital for $8 a share. The $8 price target per share remains.
Benchmark says, "We are downgrading ERT shares to Hold from Buy (issued in late February) as they are trading nearly at the agreed sale price. Our price target is unchanged at $8.00. We anticipate this transaction will close in Q3 this year. We do not anticipate any higher bid but that is possible because the transaction remains subject to shareholder approval. We believe this deal will close at the current terms because it has received unanimous support from ERT's board of directors and has the support of Blum Capital, which owns approximately 9% of the Company."
ERT closed at $7.90 a share yesterday.
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