UPDATE: Stifel Nicolaus Downgrades Ralcorp Holdings to Hold, Reiterates $78 PT
In a report published Wednesday, Stifel Nicolaus downgraded its rating on Ralcorp Holdings (NYSE: RAH) from Buy to Hold, but reiterated its $78.00 price target.
Stifel Nicolaus noted, “We are downgrading the shares of Ralcorp Holdings to Hold from Buy in the wake of Tuesday's announcement that ConAgra Foods will acquire Ralcorp in an all-cash deal for $90 per share. This offer to purchase the company represents a 28% premium to Monday's closing price. With little in the way of upside available for Ralcorp shareholders, we believe a Hold rating is appropriate to avoid the low risk of the transaction not occurring. In addition, we do not foresee a competing bid coming forth.”
Ralcorp Holdings closed on Tuesday at $88.80.
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