UPDATE: D.A. Davidson Does Not See Another Bidder Emerging for Cbeyond

D.A. Davidson has downgraded shares of Cbeyond CBEY following news that Birch Communications will acquire the company for $323 million in cash or ~$10 per share. Analyst Donna Jaegers downgraded the stock from Buy to Neutral and raised the price target from $8 to $10. Jaegers believes the 41 percent premium paid by Birch was “fair,” and represents “4.7x the 2014 EV/EBITDA estimate and 4.9x the 2015 estimate.” Jaegers does not see other buyers emerging to place a higher bid.