In a report published Monday, Piper Jaffray & Co. reiterated its Overweight rating and $14.00 price target on Town Sports International Holdings 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.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in