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Raymond James Does Not Expect Higher Bid For Cbeyond

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Cbeyond (NASDAQ: CBEY) was downgraded to Underperform from Outperform by Raymond James after Cbeyond announced that it will be purchased by Birch Communications for $10 per share. Cbeyond shares have had a small reaction to the news, opening 0.2 percent lower than Friday’s close.

Frank Louthan of Raymond James does not see the deal falling through -- it has already been approved by both boards. However, Louthan does believe that a higher offer is likely, which warrants the Underperform rating. Louthan added more detail by stating that five times 2015 EBITDA and 18 times free cash flow, “are appropriate takeout multiples for the company given the trends in its business.”

The report also stated that Raymond James is raising its 2014 and 2015 estimates because depreciation and amortization were lower than previously expected.

Shares of Cbeyond were trading at $9.94 at last check.

Latest Ratings for CBEY

DateFirmActionFromTo
May 2014Raymond JamesDowngradesOutperformUnderperform
Apr 2014CitigroupMaintainsNeutral
Apr 2014DA DavidsonDowngradesBuyNeutral

View More Analyst Ratings for CBEY
View the Latest Analyst Ratings

Posted-In: Frank Luthan Raymond JamesAnalyst Color News Downgrades Analyst Ratings

 

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