In a research note released Monday, D.A. Davidson & Co. analyst Thomas Diffely downgraded Hittite Microwave HITT to Neutral and raised the price target from $70 to $78.
The analyst stated that the stock is a, “Good Fit, Attractive Price, Moving to the Sidelines with NEUTRAL Rating.”
Analog Devices offered to buy the company Monday morning for $78 per share in cash. Shares of Hittite are up 30 percent following the announcement, while shares of Analog Devices are up nearly five percent.
On this news, Diffely believes that this price is very attractive as it represents as total enterprise valuation of $2.5 billion. The analyst is also expecting for this deal to close by the end of this summer.
The analyst also listed potential risks of possible cancellations, potential cuts to government military spending and the overall economy outlook.
Shares of Hittite are up 26 percent year-to-date.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
