UPDATE: Stifel Downgrades Sapient To Reflect Publicis Acquisition

In a report published Thursday, Stifel analyst David Grossman downgraded the rating on

from Buy to Hold, and removed the $19.50 price target. In the report, Stifel noted, “We are downgrading SAPE to Hold to reflect the company's acquisition by French advertising firm, Publicis, one of the large global ad agencies. We believe that is unlikely there will be a competing bid above this price, particularly given the substantial strategic premium (in our view). There is a $125mn break-up fee due from Sapient if the transaction is not approved (none to Publicis); however, we do not believe this is a likely scenario as 18% of the 50% shares required for approval have been committed by the two Sapient founders and the CEO.” Sapient closed on Wednesday at $24.62.