UPDATE: Wedbush Securities Terminates Coverage on Teavana Holdings
In a report published Wednesday, Wedbush Securities terminated its coverage on Teavana Holdings (NYSE: TEA).
Wedbush Securities noted, “We are dropping coverage of Teavana Holdings (TEA) due to acquisition by Starbucks (SBUX). Effective upon termination of coverage, the last recommendation (NEUTRAL), estimates and price target issued for the company should not be relied upon going forward. We continue to believe Teavana's acquisition by Starbucks fits the latter's recently announced objective of participating in and accelerating the growth of the U.S. tea category. We also believe Starbucks is uniquely positioned to render the acquisition of Teavana accretive at a 10x EV/EBITDA valuation and strategically compelling.”
Teavana Holdings closed on Monday at $15.50.
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