Oppenheimer Removes Gymboree's Rating Following Bain Capital Acquisition

Following the announcement that Bain Capital would acquire Gymboree Corporation

in an all-cash deal, Oppenheimer & Co. Inc. has decided to remove its rating for Gymboree. “We are moving to Not Rated from Outperform and removing our $52 price target,” Oppenheimer writes. “GYMB ended the day trading at $64.83, or 15x our FY11E of $4.34 vs. its 5-year forward average of 13.5x and peer group of 12.8x. We believe the company is now fully valued as we expect this transaction to close by year-end.” Oppenheimer says that while the terms of the deal allow Gymboree to solicit offers from other parties, “We do not expect anyone to tender a better offer.”