Market Overview

Chances Of Advisory Board Getting Taken Out Just Got Considerably Higher


Healthcare and Educational Consulting firm The Advisory Board Company (NASDAQ: ABCO) shares were moving higher Monday on potential takeout talks.

Baird believes the probability of ABCO being acquired has “increased considerably in recent days, given reported interest from multi strategic bidders.”

Despite a takeover catalyst, the firm sees the downside risk of a no-deal scenario as limited, citing a strong rally of Health IT peers and Elliot Associates involvement in the company that includes a 8.3 percent stake in the company as of March 2.

Baird upgraded the stock to Outperform and raised its price target to $53 from $50.

"Multiple unsubstantiated reports from last week indicate ABCO has attracted interest from a number of parties, including EQT, Pamplona Capital, and EVH. Additionally, it appears ABCO will sell its healthcare and education businesses separately."

Analysts believe the takeout has a higher than 50 percent probability around the $55 price level and a 15 percent possibility above $60. The possibility of no deal was assumed at 35 percent.

Shares were up nearly 5 percent on Monday following the upgrade.

Latest Ratings for ABCO

Oct 2017MaintainsMarket Perform
Oct 2017DowngradesOutperformMarket Perform
Aug 2017DowngradesOutperformNeutral

View More Analyst Ratings for ABCO
View the Latest Analyst Ratings

Posted-In: Baird Equity Research The Advisort Board CompanyAnalyst Color M&A Upgrades Price Target Analyst Ratings


Related Articles (ABCO)

View Comments and Join the Discussion!

Latest Ratings

HBMCredit SuisseAssumes8.8
AUYCredit SuisseAssumes4.5
PEGIBMO CapitalMaintains27.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Watch These 10 Huge Call Purchases In Tuesday Trade

Darden Restaurants Makes New All-Time High