UPDATE: DA Davidson Raises PT to $4.25 on UniTek Global Services Post Accretive Asset Acquisition
DA Davidson reiterated its Neutral rating on UniTek Global Services (NASDAQ: UNTK) but raised its price target from $3.50 to $4.25.
DA Davidson said, "UniTek has acquired the assets of privately held Skylink LTD, an installation services provider for DirecTV (DTV - $54.19). UniTek will pay up to $23.5 million, $21.5 million in three installments through May 2013 and $2 million of incentive payments. Skylink is expected to generate revenues over $31 million and EBITDA of $7 million when fully consolidated. UniTek will fund the acquisition with debt. We expect the addition to be accretive to earnings in 2013 and beyond."
UniTek Global Services closed at $3.99 on Thursday.
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