Credit Suisse Downgrades Lumenis After Takeout Offer
In a report published Friday, Credit Suisse analyst Bruce Nudell downgraded the rating on Lumenis Ltd. (NASDAQ: LMNS) from Outperform to Underperform, with a $14 price target, 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 shared 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.
Latest Ratings for LMNS
Jun 2015 | Credit Suisse | Downgrades | Outperform | Underperform |
Jun 2015 | Jefferies | Downgrades | Buy | Hold |
Jun 2015 | Maxim Group | Downgrades | Buy | Hold |
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