Article, SSH on Watch ($16 PT) Following Heartware's $320M Circulite Deal
If interested in complete article, Googl title, "Sunshine Heart (SSH) on Watch Following Heartware's (HTWR) $320M Deal for Circulite"
"Summer Street analyst Mark Landy reiterated a Buy rating and $16 price target on Sunshine Heart (NASDAQ: SSH) Monday after Heartware (NASDAQ: HTWR) announced that it is buying Circulite for $320 million. $30 million upfront in cash and stock with the remaining $290 million in milestone payments for up to 8 to 10 years. "
$16 per share seems light. That only gives us a valuation of $256 million. Our solution is SUPERIOR to Circulite's. They should have given #$%$ least a $20 PT, to equal the $320 mill that HTWR committed/PAID, and personally, I believe SSH deserves a premium over what HTWR paid for Circulite. :-)
While I agree with you that SSH's valuation should be much greater than Circulite, there is a difference between a PT and a "buyout PPS".
$16 - 20 seems like a fair PT for mid 2014, while a buyout PPS would have to be around $50 for management to seriously consider it. The potential of this company is way to great to give it away for anything less than that.