Credit Suisse Downgrades Lumenis After Takeout Offer

In a report published Friday, Credit Suisse analyst Bruce Nudell downgraded the rating on Lumenis Ltd. LMNS from Outperform to Underperform, with a price target of $14, following the announcement that the approval of the sale of the company. The analyst believes that Lumenis is likely to have exhausted all options for a more attractive offer before approving the takeout bid by XIO Group, although the company has not share information regarding the transaction negotiations. A higher bid is unlikely to come forth for Lumenis. "We expect LMNS to continue to execute on its high-single digit sales growth trajectory & do not anticipate meaningful risk to consummation of the announced transaction but we now believe the stock has a less attractive return profile than the rest of our sector," the Credit Suisse report said. The company is to be acquired for $14 per share. The deal is likely to be closed by September 2015.