Deutsche Bank: Tim Armstrong Is An Epic 'Money Maker'
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
|May 2015||UBS||Initiates Coverage on||Neutral|
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