UPDATE: Wunderlich Securities Upgrades Gas Natural Following Acquisition Offers
In a report published Tuesday, Wunderlich Securities analyst Mike Bates upgraded the rating on Gas Natural (NYSE: EGAS) from Hold to Buy, and raised the price target from $11.00 to $13.50.
In the report, Wunderlich Securities noted, “We are upgrading from Hold to Buy and increasing our 12-18 month price target for Gas Natural (EGAS) to $13.50 (previously $11) following a disclosure that the board has received and rejected at least three unsolicited acquisition offers in 2014, priced as high as $13 per share.
"We believe EGAS represents a compelling acquisition target as the industry continues to consolidate, given its attractive portfolio of assets and discounted valuation relative to peers. Our revised target equates to 17.4x our 2016 EPS estimate, which is near the midpoint of the most recent takeover bid and a $14 per share valuation where we could expect an M&A scenario within the next 12-18 months.”
Gas Natural closed on Monday at $11.64.
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