Market Overview

Deutsche Bank: Tim Armstrong Is An Epic 'Money Maker'

Share:
Related AOL
A SOTP Analysis Of Alliance Data Systems Supports $250 Share Price, Says Pacific Crest
What Are The 5 Biggest Internet Buyouts Of All Time?
Related VZ
A Preview Of Friday's Jobs Data
Potential Losers If Trump Terminates U.S.-Cuba Relations
December 2016's 10 Worst CCC Stocks At Various Market Caps (Seeking Alpha)

In a report published Wednesday, Deutsche Bank analysts downgraded the rating on AOL, Inc. (NYSE: AOL) to Hold, with a price target of $50.

Verizon Communications Inc. (NYSE: VZ) has placed a bid of $50 per share for AOL, which values the company at $4.4 billion.

"AOL management indicated that it did not pursue an auction once approached by Verizon, which could explain the speculation that another bidder may enter the scenes," the analysts said, while adding that they "struggle to see anyone else entering the picture."

In the report Deutsche Bank noted, "Tim Armstrong has elevated his status as a "money maker" to a near-epic level with the announced acquisition from VZ. After slugging out a challenging turnaround for five years post-spin, Armstrong and the AOL team have generated a great outcome for shareholders in our view, given the hand they were dealt and AOL's current trajectory."

While the price target reflects the takeover price for AOL, the downgrade is based on valuation, with the possibility of other bids being "limited," the analysts added.

Latest Ratings for AOL

DateFirmActionFromTo
Jun 2015JefferiesDowngradesBuyHold
May 2015NeedhamDowngradesBuyHold
May 2015UBSInitiates Coverage onNeutral

View More Analyst Ratings for AOL
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Downgrades Analyst Ratings

 

Related Articles (VZ + AOL)

View Comments and Join the Discussion!