UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on Teavana Holdings

In a report published Monday, Goldman Sachs Group reiterated its Neutral rating on Teavana Holdings (NYSE: TEA), and raised its price target from $12.00 to $14.00.

Goldman Sachs noted, “We update our price target methodology and 12-month price target to reflect SBUX's potential acquisition of the company. The proposed transaction is an all-cash deal at $15.50 per share. Teavana shareholders holding 70% of outstanding shares have approved the transaction by written consent. The transaction is set to close by year end pending regulatory approval. We raise our 12-month price target to $14 from $12. This reflects an M&A score of “1” (from 3) and thus a 50% weighting to our $15.50 per share M&A valuation (the highest possible weighting in our framework) and a 50% weighting to our $12 per share fundamental P/E- and DCF-based methodology (prior methodology used).”

Teavana Holdings closed on Friday at $15.45.

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