Piper Jaffray Reiterates Overweight Rating, $14 PT on Town Sports International Holdings
In a report published Monday, Piper Jaffray & Co. reiterated its Overweight rating and $14.00 price target on Town Sports International Holdings (NASDAQ: CLUB).
Piper Jaffray noted, “On Friday afternoon, Town Sports announced the company will pay a special one-time dividend of $3.00/share on December 11th, 2012 for stockholders of record on November 30, 2012. Based on CLUB's price as of Friday's market close, this special one-time dividend is ~25.5% of the equity value. The special dividend will be for ~$73.9M in total consideration and we believe shares are likely to move higher in the near term given strong free cash flow to support the shares even at a higher leverage ratio and ex-dividend.”
Town Sports International Holdings closed on Friday at $11.59.
Latest Ratings for CLUB
|Jan 2015||Imperial Capital||Upgrades||In-line||Outperform|
|Feb 2014||Piper Jaffray||Downgrades||Overweight||Neutral|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.