Shares of Cardtronics closed 15.1% higher on Friday after the non-bank automated teller machine (ATM) operator received a higher buyout offer from an unnamed third party.
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Cardtronics (CATM) said that the third party has proposed to buy all of its common stock for $39 per share. Shares last closed at $41.08. The offer comes after the ATM operator entered into a buyout agreement with Catalyst Holdings on Dec. 15, 2020. Per the deal, Catalyst Holdings agreed to acquire all of its shares at $35 per share in cash. Cardtronics stated that the acquisition agreement with Catalyst remains in full force and effect.
Notably, Catalyst revised its offer price upward to $35 from the initial proposal of $31 per share offered on Dec. 9. (See CATM stock analysis on TipRanks)
On Dec. 10, Wells Fargo analyst Timothy Willi raised the stock’s price target to $40 (2.6% upside potential) from $35 and reiterated a Buy rating. In a note to investors, Willi said that the $31 per share offer is just a starting point and he expects buyout offer prices to go higher with the entry of new bidders.
Overall, the consensus among analysts is a Hold based on 3 Holds, 2 Buys, and 1 Sell. The average price target of $32 implies downside potential of around 22.1% over the next 12 months. Shares have declined 3.9% over the past year.
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