Loewen, Ondaatje, McCutcheon Reiterates Buy Rating, $5.25 PT on Zix Corporation
In a report published Wednesday, Loewen, Ondaatje, McCutcheon USA Limited reiterated its Buy rating and $5.25 price target on Zix Corporation (NASDAQ: ZIXI).
Loewen, Ondaatje, McCutcheon noted, “Zix reported on December 31 that it and its largest institutional investor, Meldrum Asset Management (10%+ stake including affiliated persons), reached a short ‐term standstill agreement on December 28. Meldrum will appoint 2 directors (Mark Bonney and Michael Dailey) to the Board and none of the existing Board will resign (Meldrum had been seeking a special meeting to replace 3 existing Zix Directors with its own slate), leaving the Board at 8 filled seats for now. However, one Company Director (not yet named) will not seek re‐election at the next annual meeting, leaving the Board thereafter with 7 Directors. Meldrum also will receive $100,000 from Zix for reimbursement of incurred costs.”
Zix Corporation closed on Monday at $2.79.
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