Loading...
Loading...
KeyBanc Capital Markets reduced its rating on Teavana Holdings
TEA from Buy to Hold and suspended its previous $24 price target following the company's acquisition from Starbucks
SBUX
KeyBanc Capital Markets said, "The proposed $15.50/share (53% premium vs. the closing price on November 13, 2012) acquisition of Teavana Holdings, Inc. (TEA-NYSE) by Starbucks Corp. (SBUX-NASDAQ) validates our thesis that the Company had attractive unit economics, a leading position in secularly attractive tea space, and a unique store environment. We downgrade Teavana to HOLD, accordingly. The purchase price represents an approximate 19.9x P/E on our 2013 EPS estimate compared to 20.8x P/E for the active and healthy lifestyle peer group. CEO Andrew Mack had approximately 56% ownership. This, coupled with the ownership of Apax Partners (about 16%), makes closure of the transaction a virtual certainty."
Teavana Holdings closed at $15.45 on Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in