Hard to see how this acquisition of Pace is value creating given the premium they are paying. The non GAAP EPS accretion is financial legerdemain. Their earnings are declining, and they will just proforma out expenses. Fair value $32.
I do trust the GAAP numbers. I don't have any faith in non GAAP figures put out by management of any company or analysts. As I said, they have $2.50 of sustainable GAAP earnings going forward (not the $3 that analysts assume).
Company just dumped some realized gains in the income statement and didn't call them out. Obvious if you just analyze the statements. $2.50 of real earnings. 16x multiple = $40 stock. I like the upside.