Implications Of Mizuho's Acquisition On Greenhill's Financial Forecast: A Look By Analyst

  • JMP Securities analyst Devin Ryan downgraded Greenhill & Co Inc GHL to Market Perform from Market Outperform
  • The analyst downgraded the stock after the announcement of GHL's acquisition by Mizuho Financial Group Inc MFG.
  • Yesterday, Mizuho entered into a definitive agreement to acquire Greenhill for $15 per share in an all-cash transaction, representing an enterprise value of approximately $550 million. Following the deal's completion, Greenhill will operate as Mizuho's M&A and Restructuring Advisory business. 
  • The transaction is expected to close by year-end upon approval by Greenhill stockholders and regulatory bodies. 
  • Ryan sees the deal price as fair and believes the probability of acquisition completion is relatively high.
  • The analyst estimates revenues of $293.9 million and EPS of $0.45 in 2023 and $355.5 million and $2.15 in 2024, respectively.
  • Also, earlier this month, GHL reported Q1 2023 revenues of $49.7 million, missing the consensus of $52.2 million, and reported an EPS loss of $(1.27), worse than the consensus loss of $(0.48).
  • Price Action: GHL shares are trading higher by 0.27% at $14.70 on the last check Tuesday.
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