UPDATE: Stifel Nicolaus Downgrades WMS Industries to Hold on Pending Acquisition
Stifel Nicolaus downgraded WMS Industries (NYSE: WMS) from Buy to Hold and removed the price target of $20.00.
Stifel Nicolaus noted, "Given Scientific Games' (SGMS/Hold) pending offer to acquire WMS for $26 per share (announced on 1/31/13), coupled with our view that a competing bid appears unlikely, we are downgrading WMS shares from Buy to Hold. WMS closed Friday at $24.69, 51% above its pre-deal announcement close (1/30/13:$16.37) and 23% above our $20 target price. We believe shares are likely to trade in a narrowly defined range around the $26 offer price for the foreseeable future, with the deal expected to close by CYE13."
WMS Industries closed at $24.69 on Friday.
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Tags: Stifel Nicolaus