Analyst On Denbury's Acquisition: No Rival Bidders In Sight And Low Chances Of Deal Break, But Risks Remain
Portfolio Pulse from Lekha Gupta
KeyBanc Capital Markets analyst Tim Rezvan downgraded Denbury Inc (DEN) to Sector Weight from Overweight and removed the price target of $102. This follows DEN's share losses since the announcement of its acquisition by Exxon Mobil Corp (XOM) for $4.9 billion. Rezvan does not expect another bidder for DEN and sees a low chance of the deal breaking. However, if it does, DEN's share price could decline by 10% or more.
August 17, 2023 | 5:41 pm
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POSITIVE IMPACT
Exxon Mobil's acquisition of Denbury Inc has led to a positive move in XOM shares. The analyst does not expect another bidder for DEN, indicating a smooth acquisition process.
The acquisition of Denbury Inc by Exxon Mobil is seen as a positive move by the market, leading to an increase in XOM shares. The lack of rival bidders for DEN indicates a smooth acquisition process, which is likely to boost investor confidence in Exxon Mobil.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Denbury Inc was downgraded by KeyBanc Capital Markets analyst Tim Rezvan following its acquisition by Exxon Mobil. The analyst sees a low chance of the deal breaking but warns of a potential 10% or more decline in DEN's share price if it does.
The downgrade by KeyBanc Capital Markets analyst Tim Rezvan is likely to negatively impact investor sentiment towards Denbury Inc. The removal of the price target and the warning of a potential 10% or more decline in DEN's share price if the deal with Exxon Mobil breaks are significant factors that could drive the stock price down in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100