Credit Suisse Downgrades Borderfree After Acquisition Announcement From Pitney Bowes
In a report published Wednesday, Credit Suisse analysts downgraded the rating on Borderfree Inc (NASDAQ: BRDR) from Outperform to Neutral, while raising the price target from $13 to $14.
The downgrade follows the announcement of Borderfree being acquired by Pitney Bowes Inc (NYSE: PBI) for $305 million in an all cash transaction.
Borderfree reported its 1Q15 results with revenues and EBITA loss at $24.8 million and $1.4 million, respectively. The quarterly results were better than the company's revenue guidance range of $21.7 million-$24.2 million and EBITA loss range of $2.5 million-$3.4 million and Credit Suisse estimates of $24.8 million and $2.2 million, respectively.
The analysts mentioned, "While it is difficult for us to forecast a material change in the exchange rate of the USD versus the major global currencies (and the resulting transactional headwinds to Borderfree as overseas consumer buying power decrease), the full rollout of BFX in 2Q15, increased demand from China via its partnership with Alipay (which we note is not as impacted to currency-driven headwinds), and the acceleration of the international merchant base as an offsetting hedge should help mitigate the adverse FX conditions."
The analysts believe that there is "a low likelihood of an alternate bidder to emerge for BRDR shares."
Latest Ratings for BRDR
|May 2015||RBC Capital||Maintains||Sector Perform|
|May 2015||William Blair||Downgrades||Outperform||Market Perform|
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