AVID's Acquisition Influences Analyst Downgrade: Unpacking The $1.4B Deal And Share Premiums
Portfolio Pulse from Lekha Gupta
Truist Securities analyst Terry Tillman has downgraded Avid Technology Inc's (NASDAQ:AVID) rating to Hold from Buy and reduced the price target to $27.05 from $45.00. This is in response to AVID's $1.4 billion all-cash acquisition deal, which includes AVID's debt. AVID shareholders will receive $27.05 in cash for each common share, a premium of 32.1% over the closing share price as on May 23, 2023. Tillman expects AVID to report revenue of $454 million in FY23 and $504 million in FY24.
August 15, 2023 | 5:58 pm
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Avid Technology's stock rating has been downgraded following the announcement of a $1.4 billion all-cash acquisition deal. The new price target is $27.05, down from $45.00.
The downgrade of AVID's stock rating and the reduction of its price target by Truist Securities is a direct response to the company's acquisition deal. This suggests that the analyst believes the acquisition may not be as beneficial for the company's stock as previously anticipated. This could potentially lead to a decrease in the stock's price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100