UPDATE: D.A. Davidson Reiterates Buy Rating, Raises PT on Schiff Nutrition International
In a report published Wednesday, D.A. Davidson & Co. reiterated its Buy rating on Schiff Nutrition International (NYSE: SHF), and raised its price target from $29.00 to $34.00.
D.A. Davidson noted, “Bayer HealthCare LLC to buy Schiff for approximately $1.2 billion in an all cash deal, representing a purchase price of $34 per share. The deal is subject to customary closing conditions and is expected to close by calendar year-end 2012. This acquisition represents a ~47% premium to SHF's closing share price as of October 26, 2012. $34 per share in cash equates to 15.5x FY2013 EV/EBITDA. The price is very full, making the likelihood of a competing bid slim. Also note that half of the shares outstanding are in the hands of TPG and the Weider family. TPG Partners acquired their stake just two years ago (October 15, 2010) at a price of $6.52 per share. A bit better than a five-bagger in two years.”
Schiff Nutrition International closed on Tuesday at $23.19.
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